India’s quick commerce unicorn Zepto has put its public listing plans on the backburner. While the startup had previously aimed for a 2025 IPO, it has now postponed the move to calendar year 2026. Although the company may still file its draft red herring prospectus (DRHP) this year, insiders confirm that the actual listing is off the table until at least next year.
The pivot reflects the evolving priorities of the company’s leadership, particularly CEO Aadit Palicha, who has been navigating a tougher-than-expected operating environment.
The Burn Problem
Zepto’s IPO delay is largely driven by a critical need to improve profitability and reduce cash burn. Around late 2024, the startup was reportedly burning $30-35 million per month, but this figure nearly doubled by early 2025 as the company amped up spending to fend off aggressive competition from rivals like Blinkit (owned by Eternal) and Swiggy’s Instamart.
At these levels of expenditure, public market investors—especially those with an eye on profitability—would find Zepto’s balance sheet hard to digest. Competitors have either stabilized their burn or trimmed costs, putting Zepto in a vulnerable position.
High Fixed Costs Add Pressure
A key concern for Zepto has been its sky-high salary bill. Monthly employee compensation expenses hover around ₹100 crore, which is 80-90% of Swiggy’s and 60% of Blinkit’s, despite Zepto having roughly half their workforce. This imbalance raises red flags about operational efficiency.
Beyond payroll, Zepto has faced several logistical and regulatory roadblocks. Its Zepto Cafe venture paused operations in 44 Delhi NCR locations, and a notice from Maharashtra’s FDA caused temporary suspensions in areas like Dharavi. Delivery partner strikes in Hyderabad only compounded these setbacks.
Public Market Jitters
Another factor behind the delayed IPO is the lukewarm performance of listed rivals. For instance, Swiggy’s share price has declined by nearly 38% year-to-date, dropping from its highs despite being one of the country’s most recognized food delivery platforms. In contrast, Eternal (formerly Zomato) has seen an uptick of 12%, largely thanks to being profitable for eight consecutive quarters.
The message is clear: public investors are rewarding sustainable growth, not just market share. Until Zepto can demonstrate a similar path to profitability, its valuation would suffer in comparison.
IPO Syndicate Finalization Underway
Despite the strategic delay, Zepto is making progress behind the scenes. Its IPO syndicate is nearly complete, with JM Financial and Motilal Oswal joining the already onboarded Goldman Sachs, Morgan Stanley, and Axis Capital. The revised plan is to raise around $800 million, a jump from its earlier goal of $400–500 million.
Such an ambitious raise signals Zepto’s intent to be battle-ready when the markets are right—but only once its financial metrics improve.
Domestic Ownership a Strategic Focus
Interestingly, Zepto is also focusing on its ownership mix. Roughly 43-44% of its cap table is currently held by Indian shareholders, and the company is keen on achieving majority Indian ownership ahead of the IPO. This shift could make regulatory clearances smoother and bolster public sentiment.
Pre-IPO Fundraise in the Works
While the IPO may be on pause, Zepto isn’t hitting the brakes on fundraising. The company is in advanced talks to raise up to $700 million from global investors. CEO Palicha has been engaging with backers in the US, with existing investors like Avenir Growth and General Catalyst reportedly preparing to co-lead the round.
However, such a large raise could increase foreign ownership—something Zepto may want to avoid. Still, the capital would provide the necessary fuel to take on entrenched competitors like Flipkart, BigBasket, Swiggy, and Blinkit.
The Road Ahead
Zepto’s decision to delay its IPO reflects a pragmatic shift toward long-term sustainability. In a market that now demands profitable growth, not just fast expansion, the company is focusing on getting its financials in shape before stepping onto the public stage. With a bolstered IPO syndicate, strong domestic backing, and a mega fundraise in the pipeline, Zepto appears to be gearing up for a more calculated and resilient market debut in 2026.
