IPO · Commerce & Consumer Brands

Zepto postpones IPO to 2026, scales size to $800M

What they do

Zepto delivers groceries and essentials within 10 minutes across Indian cities

IPO delayed to 2026; DRHP planned for second half of 2025; size raised to ~$800 million

Company is raising ₹1,500 crore debt to buy back foreign shares and boost Indian ownership before listing

Zepto has postponed its IPO to 2026, instead of the earlier expected 2025.
The company plans to file its DRHP (draft red herring prospectus, a preliminary document for IPO) in the second half of 2025.
The IPO size has been scaled up to approximately $800 million, from an earlier target of $400-500 million.
Zepto is finalising a ₹1,500 crore ($175 million) structured debt deal with Edelweiss Alternative Asset Advisors and other investors.
The debt funds will be used to buy back shares from foreign stakeholders and boost Indian ownership before the IPO.
Currently, domestic shareholding is 43-44%; the company aims to cross 50% by the time of the IPO.
The IPO syndicate includes Goldman Sachs, Morgan Stanley, Axis Capital, JM Financial, and Motilal Oswal.
Separately, Zepto Cafe has paused operations at 44 stores in Delhi NCR and shut doors in Agra, Chandigarh, Meerut, Mohali, and Amritsar, impacting over 400 employees.

Zepto's IPO delay comes amid missed revenue and cost targets in Q4FY25.
The company faced operational issues: a Maharashtra FDA notice disrupted deliveries in Dharavi, and its food business licence was cancelled for a Dharavi warehouse due to safety violations.
There was also delivery partner unrest affecting services in Hyderabad.
Competitors like Swiggy Instamart, Blinkit, Flipkart, and BigBasket are active in the quick-commerce space.
Swiggy's valuation dropped from a peak of $18 billion to about $10 billion, signalling market pressure.

Zepto is an Indian quick-commerce company that delivers groceries and essentials within 10 minutes.
It operates in multiple Indian cities through a network of dark stores (small warehouses for fast delivery).
The company reported FY24 revenue of ₹4,454.52 crore, up 2X year-on-year.
Its FY24 loss was ₹1,248.64 crore.
Monthly cash burn was around ₹250-300 crore toward the end of 2024.
Zepto is described as India's youngest unicorn (a startup valued at over $1 billion).

Edelweiss Alternative Asset Advisors (lead) — Structured debt investor
Goldman Sachs (participated) — IPO syndicate member
Morgan Stanley (participated) — IPO syndicate member
Axis Capital (participated) — IPO syndicate member
JM Financial (participated) — IPO syndicate member
Motilal Oswal (participated) — IPO syndicate member
Avenir Growth (co-lead) — Potentially co-leading a $700 million fundraise from an existing international investor

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.