Zepto has officially postponed its IPO plans to 2026, according to sources cited by Moneycontrol. The quick commerce startup, once eyeing a 2025 listing, is now seeking up to $700 million in private capital from both domestic and overseas investors, with term sheets already on the table from existing backers Avenir Growth and General Catalyst.
What Does This Mean for You
If you’ve been watching India’s startup scene hoping to see Zepto join the stock market frenzy, this might feel like a bit of a letdown. But for Zepto, it’s a survival strategy. Before asking retail investors to bet on it, the company wants to clean up its books, curb its cash burn, and bulk up its war chest to fight rivals like Swiggy and Blinkit.
Zepto was bleeding around ₹250–300 crore per month late last year—and it got worse in early 2025. No surprise then, that investors weren’t ready to throw confetti. Public markets love a good growth story, but they hate leaky balance sheets.
Why the Delay?
- Zepto missed its revenue and cost targets in Q4 FY25.
- High cash burn, with salaries alone hitting ₹100 crore/month.
- Zepto Café paused ops in 44 NCR locations.
- Service issues in Maharashtra and Hyderabad.
- Rivals like Eternal (Zomato) are profitable and publicly listed, setting the bar higher.
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Palicha’s Pivot
Zepto CEO Aadit Palicha has been spending time in the US, discussing private funding rounds. The company is working on a $700M raise, backed by familiar faces like Avenir and General Catalyst.
However, that may dilute domestic ownership—a touchy topic Zepto wants to navigate carefully before its eventual IPO.
The Real Game Here
This isn’t just a delay. It’s a chess move. Zepto wants to buy time, scale smarter, and avoid launching into a public market that’s already punished Swiggy (down 38% YTD) and looks skeptically at red ink.
Public investors want profits. Period.
So the plan? Raise privately, fight harder, cut the burn, and maybe—just maybe—IPO with a winning story in 2026.
IPO Still on the Table (Just Later)
Despite the delay, Zepto is finalizing its IPO syndicate. Names like Goldman Sachs, Morgan Stanley, Axis Capital, JM Financial, and Motilal Oswal are all in the mix. The goal? A bigger, better $800 million IPO—up from an earlier $400–500 million plan.
In the war for 10-minute groceries, Zepto isn’t out—it’s just regrouping. If all goes to plan, 2026 could see the unicorn gallop onto the public stage, stronger and leaner.
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