Zepto Postpones IPO to 2026: Report
In a recent development, Quick commerce unicorn Zepto has reportedly postponed its initial public offering (IPO) plans, with the company now aiming to go public in 2026. This news comes as a surprise to many, considering the company’s earlier plans to list its shares on the stock market in 2025.
According to a report by Moneycontrol, Zepto’s CEO Aadit Palicha had earlier stated that the company’s ambition was to go public in calendar year 2025, pending the performance of its business. However, it appears that the company has decided to push back its IPO plans to 2026.
The decision to postpone the IPO is likely driven by the current market conditions, which are known for their unpredictability. With the global economy facing numerous challenges, including inflation, interest rates, and supply chain disruptions, many companies are choosing to delay their IPO plans in order to wait for more favorable market conditions.
Zepto, which was founded in 2020 by Palicha and Kaivalya Vohra, has been rapidly growing its business in recent years. The company has managed to expand its operations to over 150 cities across India, with a strong presence in the quick commerce space. Zepto’s business model, which focuses on delivering groceries and other essentials to customers in under 15 minutes, has proven to be highly successful, with the company reportedly clocking in millions of dollars in revenue each month.
Despite the company’s strong financials, Zepto’s decision to postpone its IPO plans may be seen as a cautious move by the company’s management. By delaying the IPO, Zepto is able to avoid the risks associated with listing its shares on the stock market during uncertain times. The company can also use this period to focus on strengthening its business operations and improving its financial performance before seeking public listing.
In addition to postponing its IPO plans, Zepto has also announced that it will be seeking private funding from both overseas and domestic investors. This move is likely aimed at raising additional capital to support the company’s growth plans and expansion into new markets.
Zepto’s decision to seek private funding is a common strategy adopted by many startups and unicorns in the Indian tech industry. By raising private funding, Zepto can avoid the regulatory requirements and scrutiny associated with a public listing, while also giving the company’s management more control over the direction of the business.
In conclusion, Zepto’s decision to postpone its IPO plans to 2026 is a strategic move by the company’s management to avoid the risks associated with listing its shares on the stock market during uncertain times. By focusing on strengthening its business operations and seeking private funding, Zepto is well-positioned to continue its rapid growth and expansion into new markets.
