Zepto Defers IPO To Focus On Profitability, Boost Domestic Shareholding: Aadit Palicha

With recent reports suggesting that Zepto’s IPO may be pushed to 2026, cofounder and CEO Aadit Palicha has implied that the delay is not due to a lack of readiness but because of a private funding opportunity. 

Palicha told ET that the company has not filed the draft red herring prospectus (DRHP) as per its earlier 2025 plan because Zepto is focused on strengthening its growth, profitability and domestic ownership.

“The only reason why we’ve not filed immediately is because we’re in a position where it looks like – given the company is on [a] growth and profitability [path] – we’ll have a significant increase in our domestic ownership. We still have about INR 7,000 crore of cash in bank, but our thought process is that, before we actually file for this IPO, we can close a pretty large transaction that puts our domestic ownership and our balance sheet at an even stronger position than it is right now,” he said.

It’s worth noting that Zepto has recently received a domestic shareholding boost of $100 Mn from Motilal Oswal’s founders, Motilal Oswal and Raamdeo Agrawal, at a valuation of $5 Bn. 

Additional capital, to the tune of $250 Mn, is expected to follow, and Edelweiss and HeroMoto are also expected to participate in Zepto’s secondary share sale.

Palicha stressed that the IPO will take place “immediately” after this major private round is completed.

On IPO preparedness, he mentioned that nearly 65% of the DRHP has already been drafted. “From an IPO readiness perspective, we are there right now,” he said.

“We still have INR 7,000 Cr [in the bank]. Instead of waiting six, seven months for an IPO, [I] might as well take that opportunity immediately available and then file after that,” he added, referring to the strategic funding opportunity currently on the table.

He said that the company is close to EBITDA breakeven and has been scaling aggressively, achieving 230-250% year-on-year growth, launching 700 stores and touching nearly $4 Bn in Gross Merchandise Value (GMV). 

Not to forget, Palicha earlier claimed the company would achieve EBITDA profitability in the final quarter of FY26. In April, he said that Zepto has reduced its EBITDA (excluding ESOPs) and operating cash flow (OCF) burn by 50% over the past three months. 

He has also refuted Zomato’s founder Deepinder Goyal’s allegations that Zepto, with around INR 5,000 Cr in cash burn, accounts for more than half of the quarterly cash burn of the quick commerce industry. 

Although the company is yet to reveal its FY25 numbers, it managed to double its consolidated revenue to INR 4,454.52 Cr in FY24 from INR 2,025.70 Cr in FY23. Its net loss remained almost flat at INR 1,248.64 Cr in FY24 from INR 1,271.84 Cr in FY23. 

As part of its IPO preparations, Zepto has shifted its domicile from Singapore to India and has changed the name of its registered entity from Kiranakart Technologies Private Limited to Zepto Private Limited. 

The company also aims to increase its domestic ownership to over 50% before listing. Sources claim Zepto’s domestic shareholding was close to 20% after the $100 Mn secondary funding in May. In December 2024, the company announced plans for a 2025 IPO which was reported to be valued anywhere between $800 Mn–$1 Bn. 

The development comes at a time when the Food and Drug Administration (FDA) revoked the food business licence of Zepto’s parent’s warehouse in Mumbai’s Dharavi, citing serious food safety violations at the premises. 

However, the suspension was revoked following a detailed re-inspection by the state’s food safety agency and the submission of a compliance report by the company.