Zepto may defer IPO; Festive carts go premium

Happy Thursday! A roadblock in valuation negotiations may push Zepto to delay its listing. This and more in today’s ETtech Morning Dispatch.

Also in the letter:
■ IT’s Q1 headcount report
■ OfBusiness FY26 revenues fall
■ Ownly eyes multi-city expansion

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Aadit Palicha and Kaivalya Vohra, cofounders, Zepto

Quick commerce startup Zepto is still negotiating the valuation for its initial public offering (IPO) and this could delay the issue if it fails to reach an agreement with investors, people in the know told us.

Deal details:

• Institutional investors have indicated a valuation of around $2.5-3 billion, while Zepto is pushing for a higher price.
• Postponement remains an option if the valuation gap persists over the next few weeks.
• However, the company prefers to list and is reviewing the offers before taking a final call on the issue.
• Zepto's current draft IPO papers are valid till August 21.

Tell me more: The valuation being discussed is far below $7 billion, at which Zepto raised $450 million from US pension fund Calpers in October 2025. It is also lower than the $3.5-4 billion range reported by ET in July.

The company is also considering reducing its planned issue by 20% from the original Rs 8,010 crore, in line with Sebi (Securities and Exchange Board of India) rules.


Zepto has also approached HNIs (high-net-worth individuals) and retail investors for its anchor book, offering shares for Rs 18.76. But the exercise attracted limited interest after several large mutual funds stayed away.

Also Read: Top funds demand deeper valuation cut for Zepto IPO

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Amazon and Flipkart are prioritising value growth over volume this festive season, with sellers placing significantly higher orders for premium products while mass-market inventory buildup stays muted.

Inside the trends: Despite a softer volume outlook in mass categories, premiumisation and recent price increases have lifted the value of festive inventory orders by 15-25% from the year before, executives told us.

• Premium product orders are up 20-25%, while mass-segment orders are flat or marginally higher.
• Entry-level smartphones saw a slight decline, while TVs and entry-level appliances grew 4-5%.
• Apparel inventory orders are up 15-20% due to continued growth in sales month-on-month this year, the chief executive of an online-focused brand said.

Premium bet: Amazon and Flipkart, which dominate over 75-80% of e-commerce sales in large cities, are focusing on top-selling products and leading brands.

• Executives at these online marketplaces and their sellers have been meeting brands to place festive orders and finalise plans since last week.
• Online sellers are building inventory around front-load washing machines, televisions of 43 inches and above, premium single-door, frost-free and side-by-side refrigerators, and smartphones priced above Rs 30,000.

Also Read: Brands see strong consumer appetite this festive season despite war-led woes

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India's top six IT firms added over 5,400 employees in Q1 FY27, marking a shift from volume-led hiring to selective, capability-based recruitment. The headcount at these six companies had dropped by 7,100 people in the Jan-March quarter.

Number-wise:

• TCS led the pack with a net addition of 9,000 — its biggest quarterly gain in three years. Wipro also grew headcount.
• Infosys’ headcount was reduced by 530 employees after a drop of 8,440 in the March quarter.
• Tech Mahindra saw a reduction of 800 employees in Q1 compared with nearly 2,000 in the previous three months.
• HCLTech, which reported a revenue dip of 0.5%, was the only one with a significant decline in headcount.

But why: Experts said there were two main factors – firms are no longer hiring ahead of uncertain demand, and AI is beginning to reduce the need for replacement hiring, though its impact remains marginal for now.

“The Q1 FY27 results indicate a more disciplined hiring environment across the IT and IT services sector, with workforce decisions increasingly aligned to business demand and delivery priorities,” Sanketh Chengappa KG of recruitment services firm Adecco India said.

Yes, and: Staffing services firm TeamLease Digital’s head, Neeti Sharma, said freshers are also returning, but in far more targeted numbers and with AI-adjacent skills. Hiring is centered around roles in AI, cloud, cybersecurity, data engineering and enterprise applications.

Also Read: IT growth under pressure amid delayed deal ramp-ups

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OfBusiness FY26 revenues fall: OfBusiness reported a 7% year-on-year decline in revenue for 2025-26 after the SoftBank-backed B2B commerce and lending platform exited low-return categories, while deeper manufacturing integration widened margins and cash generation strengthened ahead of an imminent IPO.

Ownly eyes multi-city expansion: Rapido-backed food delivery platform Ownly is preparing to expand beyond Bengaluru from next quarter, after posting strong growth in the southern city since its March launch, said cofounder and chief executive Aravind Sanka.

Gig workers welfare law in Karnataka HC: The Karnataka High Court sought responses from the Centre and the state government on a writ petition filed by Uber India challenging the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025.

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