Zepto, one of the leading quick commerce companies in India, has decided to postpone its IPO (initial public offering) until 2026.
- Zepto delays IPO to 2026, prioritizes financial stability and path to profitability before going public.
- Zepto Cafe shuts 44 outlets in North India amid high operational costs, over 400 employees impacted.
- Zepto secures Rs 1,500 crore structured debt deal with Edelweiss to boost Indian ownership ahead of IPO.
This is a deviation from the previous ambitious timeline, of the co-founder and CEO Aadit Palicha’s expressed intention of listing in 2025.
Per the report, while the company could file its draft red herring prospectus (DRHP) in the following months, it is unlikely to proceed with going public this year. Furthermore, the IPO timelines have reportedly been pushed several times with internal discussions citing the need for better financials before considering going public.
The company is concerned about cash burn and the ability to show a credible path to profitability before pursuing a listing in the public market.
In mid-August, Zepto Cafe, the restaurant division of Zepto, temporarily shuttered operations in several smaller North Indian markets, including Agra, Chandigarh, Meerut, Mohali, and Amritsar due to rising operational costs. From the Zepto Cafe reduction, the company closed approximately 44 cafes and laid off more than 400 staff.
Also Read: Zepto Achieves Annual Gross Order Value of $4 billion in Just 8 Months
At the same time, Aadit Palicha-led company is wrapping up a Rs 1,500 crore (about $175 million) structured debt deal with Edelweiss Alternative Asset and other investment groups. The money will be used to buy back shares back from foreign shareholders that will boost the Indian ownership ahead of the IPO.
Zepto’s this move reflects a growing trend among Indian startups delaying IPOs to align with sustainable growth and investor confidence.
