Quick-commerce platform Zepto has confirmed its plans to conduct an initial public offering (IPO) in early 2026.

A company spokesperson refuted claims of a delay, said the timeline has always been set for late 2025 to early 2026.

The company plans to file its draft red herring prospectus later this year and aims to raise US$800 million.

Zepto targets break-even or EBITDA positivity before listing and has no urgency to exit early investors.

It has increased domestic ownership to around 40%, aiming for 51% before the IPO.

Zepto, valued at US$5 billion, has paused standalone cafes and will focus on integrating operations amid global uncertainty.

🔗 Source: Fortune India

🧠 Food for thought

1️⃣ Profitability before IPO: a lesson from food delivery predecessors

Zepto’s strategy to achieve EBITDA positivity before going public mirrors a key learning from India’s food delivery sector.

When comparing Swiggy and Zomato’s IPO journeys, market analysts consistently highlight Zomato’s profitability as its critical advantage, with Zomato’s market capitalization growing to over $25 billion since its 2021 IPO 1.

Unprofitable Swiggy faced greater investor skepticism despite similar business models, with analysts expressing concerns about its ongoing losses and competitive challenges 2.

This pattern suggests Zepto’s focus on financial health before IPO isn’t just conservative planning. It reflects how Indian public markets have rewarded profitability in the delivery sector.

The company’s spokesperson explicitly mentioned learning from predecessors, noting that while “companies like Zomato and Swiggy set a trend of loss-making firms going public,” Zepto prefers achieving financial stability first.

2️⃣ Strategic timing in India’s evolving IPO landscape

Zepto’s 2026 IPO timeline positions it within what appears to be a strengthening Indian public market environment.

Recent Zepto developments