Quick commerce unicorn Zepto has officially deferred its highly anticipated initial public offering (IPO) to early 2026, shifting its previous timeline of 2025. The decision, according to cofounder and CEO Aadit Palicha, comes amid the company’s strategic realignment to prioritize profitability and increase domestic investor shareholding before hitting the public markets.
Zepto, which has emerged as one of India’s fastest-growing 10-minute delivery platforms, had initially planned to file its Draft Red Herring Prospectus (DRHP) in 2025. However, citing internal operational burn and the need for better financial discipline, the company has now decided to extend its IPO plans. Palicha stated that Zepto is committed to reaching EBITDA-level profitability before going public, as it seeks to avoid the pitfalls that some listed companies in the same space have experienced due to premature market entries.
The company, currently valued at $5 billion, is facing intense scrutiny around its operating model. With a reported monthly salary bill of over ₹100 crore, rising logistics costs, and recent disruptions—such as the closure of 44 Zepto Cafe outlets in Delhi NCR, FDA action on its Dharavi dark store, and worker protests in Hyderabad—the move to delay the IPO reflects Zepto’s effort to stabilize its internal metrics before facing the public market.
Another major focus area for Zepto is increasing domestic shareholding. From an earlier 18–20% Indian ownership seen during past secondary deals, Zepto has now raised that figure to around 43–44%. This shift was largely driven by a $100 million investment in June from Motilal Oswal and Raamdeo Agrawal, both prominent names in Indian equity circles. The same round took total funding to $350 million and brought domestic shareholding to over 35%, with the company now targeting a 50%+ Indian ownership stake ahead of the IPO.
Zepto is also preparing to raise another large private round before the IPO. According to people familiar with the matter, term sheets worth as much as $700 million have been floated, with interest from investors such as Avenir Growth and General Catalyst. This pre-IPO funding is expected to provide the company with the runway it needs to achieve breakeven and improve balance sheets without compromising on valuation or giving up majority domestic ownership.
Despite the deferment, Zepto continues to build its IPO syndicate. International banking majors Goldman Sachs and Morgan Stanley, along with Axis Capital, were brought on board early. More recently, domestic firms JM Financial and Motilal Oswal have also joined as advisors. With this strong banking lineup, Zepto has increased its IPO target size from an earlier estimate of $400–$500 million to nearly $800 million, positioning itself for one of India’s largest tech listings if all goes as planned.
Operating over 900 dark stores and managing more than 48,000 SKUs, Zepto’s scale and efficiency remain core strengths. The company aims to reach profitability in FY26, and the extended IPO timeline gives it ample opportunity to course-correct, reduce burn, and solidify its market leadership. Palicha maintains that a profitable, India-heavy cap table will not only attract better public market valuations but also foster long-term sustainable growth.
As India’s quick commerce space continues to evolve rapidly, Zepto’s decision reflects a growing trend among high-growth startups to prioritize fundamentals over speed. By postponing its IPO and doubling down on profitability and Indian investor participation, Zepto is clearly aiming for a stronger, more resilient public debut in 2026.
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