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.

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🔗 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.

Despite Zepto’s impressive growth—with monthly Gross Order Value surging from ₹750 crore to ₹2,400 crore in one year—Blinkit has widened its lead from 1.79 million weekly active users in January to 7.7 million by May 2025 5.

The competition is becoming more capital-intensive as players expand beyond groceries into higher-margin categories like electronics and personal care to improve unit economics 6.

This competitive intensity likely influences Zepto’s strategic decision to defer its IPO, allowing more time to strengthen its market position and financial performance before facing public market scrutiny.

3️⃣ Market volatility prompting strategic IPO delays across the startup ecosystem

Zepto’s IPO deferral mirrors a broader pattern among Indian startups responding to market uncertainties in 2025.

Despite earlier expectations of a record IPO year with approximately 25 startups projected to raise over ₹55,000 crore, many companies are now slowing their public listing plans due to market corrections and geopolitical tensions 7, 8.

In the current environment, investors are demonstrating greater selectivity, focusing on companies with proven scalability and resilience rather than speculative growth stories 2.

Zepto’s decision to defer its IPO to 2026 reflects a strategic approach to avoid potential valuation challenges and ensure the company enters public markets from a position of strength rather than necessity.

Recent Zepto developments

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