Quick commerce unicorn Zepto has delayed its IPO plans by a year and is now aiming for a stock market listing in 2026, according to sources cited by Moneycontrol.
However, Zepto CEO and co-founder Aadit Palicha told CNBC-TV18 that the company still plans to file its Draft Red Herring Prospectus (DRHP) with SEBI in 2025.
Earlier Statements Indicated 2025 Listing
Earlier, Palicha had expressed confidence about listing in 2025. In a 2024 interview with PTI, he said, “This is our ambition… Of course, capital markets may change, but for now, we are optimistic that if the business continues to perform like this, we will go public in calendar year 2025.”
Focus on Lowering Cash Burn and Improving Profitability
According to a Moneycontrol source, the IPO has been delayed by a few months, and it’s now clear Zepto will not go public in 2025.
The company is focusing on reducing its cash burn and improving its profitability.
Even if Zepto files its DRHP in the coming months, the actual IPO is unlikely to happen this year. The high cash burn rate is a major hurdle to launching the IPO.
Zepto Earlier Planned to Raise $400–500 Million, Now Targets $800 Million
Zepto originally planned to raise $400–500 million through its IPO, but that target has now increased to around $800 million.
Reports also indicate that the company missed its revenue and cost targets for the January–March 2025 quarter, which has led to internal changes in strategy.
Zepto competes in the fast-growing quick commerce space with rivals like Blinkit (owned by Zomato) and Swiggy’s Instamart.
More Investment Banks Added to IPO Syndicate
Even though the IPO timeline has shifted, Zepto is actively working on finalizing its IPO partners.
Sources say that JM Financial and Motilal Oswal have been added to the list of investment banks managing the IPO. They join existing names like Goldman Sachs, Morgan Stanley, and Axis Capital.
Domestic Ownership Increases, Private Funding on the Horizon
About 43–44% of Zepto is currently owned by Indian investors. The company is confident that it can become majority Indian-owned by the time of the IPO or shortly before.
In the meantime, Zepto is also looking to raise a significant amount of funding from private international investors.
