Zepto delays IPO to 2026, seeks $700M private funding amid competitive pressures and operational challenges in India’s quick commerce sector.
Zepto, a prominent quick commerce unicorn headquartered in India, has deferred its initial public offering (IPO) plans to calendar year 2026. The Bengaluru-based company, which operates in the fast-growing quick commerce sector, had initially targeted a 2025 IPO but is now focusing on reducing cash burn and improving profitability before going public.
Zepto’s CEO and co-founder, Aadit Palicha, recently spent significant time in the United States discussing a potential private funding round with investors. The company has reportedly received term sheets from existing backers Avenir Growth and General Catalyst for a possible $700 million fundraise. This capital injection aims to strengthen Zepto’s position against fierce competition from rivals like Eternal’s Blinkit and Swiggy’s Instamart.
Despite earlier confidence about going public in 2025, sources have confirmed that the IPO timeline has been pushed back due to missed revenue and cost targets in the fourth quarter of fiscal year 2025. Operational challenges, including increased fixed costs and regulatory hurdles such as the Maharashtra FDA notice and strikes at delivery centers in Hyderabad, have further pressured the company.
Zepto is also restructuring its IPO syndicate with JM Financial and Motilal Oswal joining Goldman Sachs, Morgan Stanley, and Axis Capital. The company plans to raise approximately $800 million through the IPO, up from earlier estimates of $400-500 million.
Currently, Zepto enjoys a strong domestic shareholding base of around 43-44%, and it aims to maintain majority Indian ownership by the time of the IPO. While raising more private capital could increase foreign ownership, it would also provide critical funding to compete in a crowded market.
India’s quick commerce sector continues to heat up, with Zepto recalibrating its strategy as it prepares for a future public offering.
