The quick commerce startup, according to the co-founder, is currently focusing on financial performance and has thus postponed its planned stock market debut.
Quick commerce platform Zepto has postponed its planned stock market debut, with co-founder AaditPalicha telling employees that the company will be revisiting its IPO after strengthening its financial metrics and valuation.
The company has postponed its Initial Public Offering (IPO) by two to three quarters, shifting its expected listing timeline to early 2027. The update was shared by co-founder and CEO AaditPalicha during a company-wide town hall, where he told employees that the business would return to the public markets once its financial performance improves and market conditions become more favourable. The startup earlier had been preparing for a public listing in 2026. However, the revised schedule means the company is now targeting a listing between February and May 2027, depending on operational progress and investor sentiment.
Palicha reassures employees that there’s no need to refile IPO documents.
Palicha also reassured employees that Zepto will not have to restart the regulatory process from scratch. According to him, the company has until November 2027 to complete its listing. It can proceed by submitting updated financial statements as an addendum to its existing draft IPO papers filed with the Securities and Exchange Board of India (SEBI).
This approach allows the company to preserve the work already completed while giving it additional time to improve key business indicators before approaching public investors.
The focus shifts towards profitability.
The IPO delay has come shortly after reports that Zepto opted to raise over $100 million from its existing investors through a pre-IPO funding round instead of immediately pursuing a public issue. Existing backers, including venture capital firms, participated in the fundraising, providing the company with additional capital to support its growth plans.
According to reports, institutional investors raised concerns about the company’s cash burn and valuation expectations during IPO discussions. While Zepto had reportedly sought a valuation between $4 billion and $5 billion, some prospective investors were willing to value the company at a lower range, prompting management to defer the listing.
The company is now concentrating on improving profitability and reducing operating losses before returning to the capital markets. Reports suggest Zepto has already reduced its quarterly cash burn, extending its financial runway and providing additional time to strengthen its balance sheet.
