Quick-commerce unicorn Zepto has postponed its initial public offering (IPO) plans to 2026, shifting away from its earlier target of 2025, sources close to the company told Moneycontrol. Despite CEO Aadit Palicha’s earlier optimism about a 2025 listing, the company now aims to strengthen its financial health before going public.
Multiple delays have pushed the IPO timeline as Zepto focuses on reducing cash burn and improving profitability amid intense competition from players like Swiggy’s Instamart and Eternal’s Blinkit. Reports suggest that Zepto missed its revenue and cost targets for Q4FY25, prompting a strategic recalibration.
The startup faces high operational costs, including monthly employee salaries near ₹100 crore, despite having fewer staff than competitors. Challenges have also affected its ancillary businesses, with Zepto Cafe suspending operations in several locations and regulatory hurdles impacting services in Maharashtra and Hyderabad.
Given the steep cash burn, sources said public market investors are unlikely to support an IPO until Zepto shows profitable growth, especially as rivals demonstrate better financial discipline. Swiggy’s declining stock price and Eternal’s steady performance also factor into Zepto’s cautious approach.
Meanwhile, Zepto is finalizing its IPO syndicate, adding JM Financial and Motilal Oswal alongside Goldman Sachs, Morgan Stanley, and Axis Capital. The company plans to raise approximately $800 million, nearly double earlier estimates.
In the meantime, Zepto is actively pursuing significant private funding rounds, targeting around $700 million from global investors like Avenir Growth and General Catalyst. CEO Palicha’s recent US visits included discussions on this potential capital raise, which could bolster Zepto’s resources to compete with entrenched rivals.
Though the private fundraising may increase foreign ownership—something Palicha has aimed to limit—it would provide Zepto the necessary financial firepower to expand market share against competitors such as Swiggy, Blinkit, Flipkart, and BigBasket.
