Quick-commerce platform Zepto has confirmed its plans to conduct an initial public offering (IPO) in early 2026.
A company spokesperson refuted claims of a delay, said the timeline has always been set for late 2025 to early 2026.
The company plans to file its draft red herring prospectus later this year and aims to raise US$800 million.
Zepto targets break-even or EBITDA positivity before listing and has no urgency to exit early investors.
It has increased domestic ownership to around 40%, aiming for 51% before the IPO.
Zepto, valued at US$5 billion, has paused standalone cafes and will focus on integrating operations amid global uncertainty.
?? Food for thought
1?? Profitability before IPO: a lesson from food delivery predecessors
Zepto’s strategy to achieve EBITDA positivity before going public mirrors a key learning from India’s food delivery sector.
When comparing Swiggy and Zomato’s IPO journeys, market analysts consistently highlight Zomato’s profitability as its critical advantage, with Zomato’s market capitalization growing to over $25 billion since its 2021 IPO.
Unprofitable Swiggy faced greater investor skepticism despite similar business models, with analysts expressing concerns about its ongoing losses and competitive challenges.
This pattern suggests Zepto’s focus on financial health before IPO isn’t just conservative planning. It reflects how Indian public markets have rewarded profitability in the delivery sector.
The company’s spokesperson explicitly mentioned learning from predecessors, noting that while “companies like Zomato and Swiggy set a trend of loss-making firms going public,” Zepto prefers achieving financial stability first.
2?? Strategic timing in India’s evolving IPO landscape
Zepto’s 2026 IPO timeline positions it within what appears to be a strengthening Indian public market environment.
India emerged as the busiest IPO market globally in 2024, showing remarkable activity while other regions like the U.S. and Europe remained below pre-pandemic levels 3.
Global IPO data shows the total proceeds reached approximately $126.10 billion in 2024 across 1,340 IPOs, with falling interest rates encouraging more candidates to enter the market.
Zepto’s caution about “prevailing uncertainty at both national and global levels” aligns with market experts’ observations that geopolitical tensions can significantly impact IPO timing and success.
The company’s methodical approach, securing domestic investors, aiming for profitability, and carefully timing market entry, reflects broader trends where successful IPOs increasingly depend on strong fundamentals rather than just growth metrics.