Zepto’s Strategic Pause: Why the Fast Commerce Star Is Holding Back Its IPO Plans

In the ever-changing world of Indian startups, knowing when to take a leap and when to wait is critical. Zepto, one of India’s fastest-growing quick commerce companies, has chosen the latter. The firm has formally delayed going public, instead taking a more cautious route before making its way to Dalal Street.

While most anticipated Zepto to catch the wave and file for an IPO later in 2025, the firm is now contemplating a listing in 2026. It is not slowing down. It is being smarter, more intentional, and better equipped for what comes next.

Looking Inward: Building Up Before Scaling Out

While external market factors may have been a contributing factor, Zepto's action is largely tactical. The management is keen on cutting operational losses and shoring up its overall financial picture before tapping public shareholders.

During FY24, Zepto had operating revenue of ₹4,454.52 crore, which was over double the last year. Meanwhile, it incurred a loss of ₹1,248.64 crore. This deficit is the cost of growth, such as warehouse expansion, new markets, and customer acquisition incentives. Instead of going public in a hurry, the company is opting to take a break and focus on sustainability.

Challenges That Shaped the Decision

Recent business struggles have also pinned Zepto's decision. Various incidents have tarnished the reputation of the firm, such as the suspension of a food business license for its Dharavi warehouse for breaching safety guidelines. Closure of 44 Zepto Cafe warehouses, increasing customer complaints, and antitrust issues have also added to the pressure.

There have also been complaints of sellers being presented with auto-activated ad campaigns without consent. Such problems, though not specific to Zepto, point to the need for internal stability prior to going through the prying eyes of public markets.

Behind the Scenes: Preparing for the Big Moment

Even though the IPO is delayed, Zepto is actively laying the groundwork. The company is finalising its IPO syndicate and has already brought in major financial players. Reports indicate that Goldman Sachs, Morgan Stanley, Axis Capital, JM Financial, and Motilal Oswal are all involved in the process.

Interestingly, Zepto has also increased the size of the planned IPO. Originally targeting around $450 million, the company is now aiming to raise between $800 million and $1 billion, showing confidence in its future growth and valuation.

A Growing Indian Identity

Another factor behind the pause may be Zepto’s evolving ownership structure. Domestic investors currently hold between 43 and 44 percent of the company. Zepto appears to be working toward majority Indian ownership, which could enhance its positioning with regulators and increase appeal among local investors.

In the meantime, Zepto is expected to raise fresh funds through private markets, especially from international investors. This strategy will assist in keeping the momentum while providing the company with more time to consolidate its balance sheet.

Conclusion: A Strategic Delay, Not a Setback

Zepto's decision to postpone its IPO is not an about-face. It is an exercise in maturity and long-term vision. In an environment where most companies are scrambling to list out, Zepto is taking time to lay the foundation first. Through an emphasis on profitability, reputation, and regulatory harmony, the company is preparing itself for a greater impact when the time is right.

For now, the message is plain from Zepto: it is not a matter of getting listed first, but of being the most resilient when you do.