Zepto Defers IPO To Focus On Profitability, Boost Domestic Shareholding

Quick commerce startup Zepto has decided to delay its IPO plans to 2026, shifting from its previously stated 2025 timeline. Co-founder and CEO Aadit Palicha clarified that the decision stems not from a lack of IPO readiness but from a strategic opportunity to raise private capital. He stated that the company is on a strong path toward growth and profitability and is now in a position to significantly increase its domestic ownership. Zepto currently holds ₹7,000 crore in reserves, and the leadership sees value in strengthening its balance sheet and domestic shareholding before proceeding with a public listing.

The company recently received a major boost in domestic funding, with Motilal Oswal’s founders investing $100 million at a $5 billion valuation. Additional funding of around $250 million is expected soon, with participation from Edelweiss, HeroMoto, and others in a secondary share sale. Palicha indicated that the IPO will follow immediately after this funding round is closed. Nearly 65% of Zepto’s DRHP has already been drafted, underlining its preparedness for listing whenever the time is right.

In terms of business performance, Zepto is nearing EBITDA breakeven and is scaling rapidly with year-on-year growth of 230–250%, nearly 700 operational stores, and an estimated GMV of $4 billion. The company’s FY24 consolidated revenue more than doubled to ₹4,454 crore, while its net loss held steady at ₹1,248 crore. Palicha previously stated that EBITDA profitability (excluding ESOPs) is expected by the final quarter of FY26, with a 50% reduction in operating cash flow burn over recent months.

To support its IPO ambitions, Zepto has shifted its base from Singapore to India and renamed its registered entity to Zepto Private Limited. The company aims to cross 50% domestic ownership before listing. While regulatory concerns briefly surfaced due to a temporary suspension of its food business license in Mumbai’s Dharavi, the issue was resolved after compliance measures were implemented. With robust financial backing and growing domestic control, Zepto appears to be positioning itself for a strong, well-timed public debut.