Zepto Delays IPO to Strengthen Profitability, Boost Domestic Ownership: CEO Aadit Palicha
Zepto has postponed its much-anticipated IPO to focus on profitability and increase domestic ownership, according to cofounder and CEO Aadit Palicha. Contrary to assumptions about readiness, Palicha clarified that the delay is strategic, driven by a private funding opportunity that could reinforce the company’s balance sheet.
Why Zepto Is Deferring Its IPO
Originally slated for 2025, Zepto’s IPO may now happen in 2026, pending the completion of a major secondary funding round.
- The quick commerce firm has not yet filed its DRHP, though 65% of it is reportedly ready.
- Palicha emphasized the opportunity to enhance domestic equity before listing, noting, “We still have about INR 7,000 Cr in the bank… [but] we can close a pretty large transaction that puts our domestic ownership and balance sheet at an even stronger position.”
Domestic Ownership Drive Gains Momentum
Zepto recently secured a $100 million domestic infusion from Motilal Oswal and Raamdeo Agrawal at a $5 billion valuation.
- Additional funding of $250 million is expected soon, with Edelweiss and HeroMoto likely to join the round.
- The company aims to exceed 50% domestic ownership before going public, up from roughly 20% post-May 2024.
Operational Highlights and Financial Metrics
Palicha revealed that Zepto is approaching EBITDA breakeven and has cut operating cash flow burn by 50% in recent months.
- The company posted a consolidated revenue of INR 4,454.52 Cr in FY24, doubling from INR 2,025.70 Cr in FY23.
- Net losses held steady at INR 1,248.64 Cr for FY24.
- Zepto has launched over 700 stores and achieved 230–250% YoY growth, with a GMV nearing $4 billion.
In preparation for the IPO, Zepto has also:
- Shifted its domicile from Singapore to India
- Rebranded its corporate entity from Kiranakart Technologies Private Limited to Zepto Private Limited
Regulatory Compliance and Challenges
The IPO delay comes shortly after Zepto’s Mumbai warehouse licence was temporarily suspended by the FDA over hygiene violations. The issue was resolved following a re-inspection and submission of a compliance report.
Palicha also refuted Zomato CEO Deepinder Goyal’s claim that Zepto accounts for over half the industry’s cash burn, citing stronger financial discipline.
With a strong cash position, growing domestic support, and improving unit economics, Zepto’s IPO delay reflects a long-term strategy to emerge as a more robust, locally anchored player in the fast-growing quick commerce segment.
