18 June 2025
Quick‑commerce unicorn Zepto has officially delayed its IPO to calendar year 2026, pushing it back from initial plans due to ongoing efforts to reduce cash burn and strengthen profitability. The move underscores broader concerns regarding the viability of deep-pocket quick‑commerce models, particularly when faced with intense competition and mounting overheads.
Cash Burn & Operational Challenges
As previously reported, Zepto’s cash burn had escalated from around ₹250–300 crore per month in November to even higher levels by early 2025. Heavy salary expenses—around ₹100 crore monthly—intensified the pressure, compounded by underperforming ventures like Zepto Café and regulatory hiccups including a Maharashtra FDA notice suspending service in parts of Dharavi. These challenges, coupled with labor disruptions in Hyderabad, prompted the company to revisit its pre‑IPO roadmap.
Seeking Alternative Capital While IPO is on Hold
Instead of rushing to list, Zepto is now pursuing a fresh private capital infusion from both domestic and international investors, with current backers reportedly reviewing term sheets in the vicinity of US$700 million. This strategic pivot is aimed at extending the runway, shoring up financial health, and navigating headwinds from rivals like Blinkit and Swiggy Instamart before preparing for a public market debut in 2026.
Quick‑commerce unicorn Zepto has officially delayed its IPO to calendar year 2026, pushing it back from initial plans due to ongoing efforts to reduce cash burn and strengthen profitability. The move underscores broader concerns regarding the viability of deep-pocket quick‑commerce models, particularly when faced with intense competition and mounting overheads.
Cash Burn & Operational Challenges
As previously reported, Zepto’s cash burn had escalated from around ₹250–300 crore per month in November to even higher levels by early 2025. Heavy salary expenses—around ₹100 crore monthly—intensified the pressure, compounded by underperforming ventures like Zepto Café and regulatory hiccups including a Maharashtra FDA notice suspending service in parts of Dharavi. These challenges, coupled with labor disruptions in Hyderabad, prompted the company to revisit its pre‑IPO roadmap.
Seeking Alternative Capital While IPO is on Hold
Instead of rushing to list, Zepto is now pursuing a fresh private capital infusion from both domestic and international investors, with current backers reportedly reviewing term sheets in the vicinity of US$700 million. This strategic pivot is aimed at extending the runway, shoring up financial health, and navigating headwinds from rivals like Blinkit and Swiggy Instamart before preparing for a public market debut in 2026.
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