Zepto delays IPO plans to 2026

Zepto, the quick commerce platform, has delayed its IPO plans to 2026, pushing back its earlier aim to file the Draft Red Herring Prospectus (DRHP) this year.

The company had appointed Goldman Sachs, Morgan Stanley, and Axis Capital as IPO underwriters but has not commented publicly on the delay.

Zepto recently changed its parent company name from Kiranakart to Zepto Private Limited and shifted its headquarters from Singapore to India.

CEO Aadit Palicha said the company targets breakeven EBITDA and operating cash flow by September 2025, with most dark stores expected to be EBITDA-positive soon.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ The shifting IPO landscape favors profitability over growth

Zepto’s IPO deferral reflects a broader trend in the Indian startup ecosystem where companies are prioritizing sustainable business models before going public.

The Indian IPO market is experiencing a strategic pause in 2025, with companies focusing more on governance and financial readiness than market timing 1.

This represents a significant shift from the previous trend of high-growth, high-valuation IPOs to a more disciplined approach emphasizing profitability and operational efficiency 2.

Several startups have trimmed their offer sizes by 15-30% in early 2025, demonstrating greater financial prudence in the current market environment 2.

Urban Company’s successful IPO filing came after demonstrating a remarkable turnaround from a ₹170 crore loss to a ₹242.5 crore profit in FY25, establishing a benchmark for pre-IPO financial performance 3.

Zepto’s own projection of approaching EBITDA breakeven by September quarter aligns with this market expectation of demonstrating a clear path to profitability before listing.

2️⃣ Quick commerce competition intensifies amid rapid market expansion

Zepto’s IPO timing decision comes amid intensifying competition in India’s quick commerce sector, which is projected to grow from $300 million in 2022 to $7.1 billion by FY25 4.

The market has consolidated into a two-horse race between Blinkit and Zepto, with Blinkit commanding 41-46% market share while Zepto holds approximately 25-30% 5, 6.