India, July 30 -- A day after reports said that Zepto's IPO plans had hit another hurdle over valuation, the quick commerce startup has now put its public listing on hold and is instead pursuing a pre-IPO fundraise.

Sources told Inc42 that Zepto has paused work on its IPO for the time being and has begun working on a pre-IPO placement of about Rs.1,000 Cr (around $105 Mn).

Under SEBI regulations, companies can raise up to 20% of their proposed fresh issue through a pre-IPO placement, with the amount raised subsequently deducted from the fresh issue component of the IPO.

The sources said Zepto is expected to raise the capital primarily from domestic investors. However, Moneycontrol, which reported the development first, said existing in...