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Zepto Defers IPO To Focus On Profitability, Boost Domestic Shareholding: Aadit Palicha
- Zepto's IPO is delayed to 2026 to focus on profitability and boost domestic shareholding, as cofounder and CEO Aadit Palicha revealed.
- The delay is due to a private funding opportunity, not lack of readiness, as the company aims to increase domestic ownership.
- Recent domestic funding injections from Motilal Oswal's founders and expected capital from Edelweiss and HeroMoto will bolster Zepto.
- Palicha emphasized that the IPO will follow a major private funding round.
- About 65% of the IPO draft (DRHP) has been completed, indicating readiness for the public offering.
- Zepto, nearing EBITDA breakeven, has achieved substantial growth, launching stores and reaching $4 billion in GMV.
- The company targets EBITDA profitability in the final quarter of FY26, with reduced cash burn.
- Zepto disputes claims of high cash burn compared to industry peers and plans to increase domestic ownership to over 50%.
- The company doubled revenue in FY24 and aims for over 50% domestic ownership before listing.
- Zepto relocated its domicile to India and renamed the entity in preparation for the IPO.
- The FDA revoked a food business license at Zepto's parent warehouse but later reinstated it following compliance measures.
- Zepto's IPO, initially planned for 2025, was set to be valued between $800 Mn-$1 Bn.
- The company's domestic shareholding was around 20% after the $100 Mn fund injection in May.
- Zepto's growth trajectory and strategic funding delays signal a strong emphasis on financial stability and growth before going public.
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