Zepto Postpones IPO to 2026, Pursues Private Funding from Domestic and Overseas Investors

Zepto, one of India’s fastest-growing quick-commerce startups, has decided to postpone its IPO plans until 2026. Instead of rushing to go public, the company is doubling down on raising additional private funding, both from within India and abroad, to strengthen its finances and scale up before listing on the stock market.

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Changing Course on IPO Timing

Originally, Zepto had its sights set on an IPO in late 2025. However, the plan is now to wait until 2026. Why the delay? CEO and co-founder Aadit Palicha says it's all about timing; he wants Zepto to generate a solid free cash flow before going public. In his words, the “sweet spot” for an IPO is when the company is financially self-sustaining.

Boosting Domestic Investment

Zepto is putting more effort into building a strong base of Indian investors. In November 2024, it raised a massive $350 million, entirely from domestic sources. Led by Motilal Oswal Private Wealth, this was the biggest 100% Indian funding round in the country’s startup scene. It generated revenue from high-net-worth individuals (HNIs), family offices, and key financial institutions.

Next up? A $300 million pre-IPO round through secondary share sales. Zepto aims to close this by October 2025 and is targeting prominent names such as SBI Mutual Fund, Axis Mutual Fund, and ICICI Prudential. This round should allow some early international backers to cash out while giving Indian investors a bigger stake in the company.

Still Winning Over Global Investors

Zepto isn’t just looking inward. In June 2024, it secured $665 million in a pre-IPO round from prominent international investors, including Glade Brook Capital, The StepStone Group, and Nexus Venture Partners. Then, in August 2024, General Catalyst led another $340 million round, boosting Zepto’s valuation to a whopping $5 billion.

Growth That Speaks for Itself

On the operations front, Zepto is scaling fast. It runs more than 900 dark stores across India and processes over a million orders daily. Its gross merchandise value (GMV) has tripled in just eight months, hitting $3 billion. And it's not just groceries; sales of electronics, clothes, and other items are bringing in ₹200 crore every month.

Revenue-wise, things are moving in the right direction. Zepto’s FY24 revenue doubled to ₹4,454 crore, while net losses narrowed slightly to ₹1,248.64 crore. The company expects to hit $5.5 billion in sales by FY26 and reach EBITDA breakeven by the end of that fiscal year.

Streamlining the Business Structure

To make the IPO path smoother and more attractive to Indian investors, Zepto has completed a significant restructuring. It relocated its legal base from Singapore to India, a move known as a reverse flip. That means its Singapore-based parent company merged into the Indian entity, simplifying things and opening the door to India’s capital markets.

Holding Its Own in a Crowded Market

Zepto is in a fierce race, competing with heavyweights like Blinkit, Swiggy Instamart, and BigBasket. Despite the cutthroat environment and spending over ₹1,000 crore in just three months, Zepto is holding firm. It generated $3 billion in gross sales, trailing only Blinkit's $3.7 billion.

What’s Next?

Looking ahead, Zepto is laser-focused on efficiency, growth, and innovative fundraising. By pushing for more Indian ownership and simplifying its corporate structure, the company is making bold moves now to set itself up for a successful IPO in 2026 and a long-term spot at the top of India’s quick-commerce market.