Confirmed: The IPO is Postponed, Not Cancelled
First, the big news: Zepto has officially paused its Initial Public Offering (IPO). The company, which was expected to list as early as August 2026, has decided to delay its debut. However, this is a postponement, not a cancellation. In a company town
hall, co-founder and CEO Aadit Palicha clarified that the company has time until November 2027 to list without refiling its draft IPO papers with the Securities and Exchange Board of India (SEBI). Instead of a public listing, Zepto is now reportedly raising around ₹1,000 crore in a pre-IPO funding round from existing and domestic investors. This move is seen as a way to buy more time and strengthen its financial position before approaching the public markets again.
Confirmed: The Valuation Gap Was a Major Hurdle
The primary reason for the delay is a significant disagreement over the company's valuation. In its last private funding round in October 2025, Zepto was valued at a staggering $7 billion. However, when it began discussions with public market investors like mutual funds and insurance companies, the reception was much cooler. Reports indicate these institutional investors valued the company at somewhere between $2.5 billion and $4.5 billion, a steep drop from its private valuation. Rather than accept a listing at a much lower price, Zepto's leadership opted to wait. This isn't necessarily a sign of a struggling business—its revenue has continued to surge—but rather a reflection of the different ways private and public investors assess high-growth, loss-making companies.
Confirmed: The 'Reverse Flip' to India is Complete
One crucial step that is fully confirmed and completed is Zepto's 'reverse flip'. This is the process of changing the company's domicile from a foreign country (in this case, Singapore) back to India. This complex legal and financial manoeuvre was successfully finished in early 2025, with approvals from courts in both Singapore and India. Becoming an Indian-domiciled entity is a mandatory prerequisite for listing on Indian stock exchanges like the BSE and NSE. This move signalled Zepto's long-term commitment to the Indian market and was a key milestone on its path to an IPO.
Unclear: The New, Exact IPO Timeline
While we know the IPO is delayed, the new timeline remains fluid. Initial reports suggested a delay of one to two quarters. More recent indications point towards a potential listing window between February and May 2027. Company leadership has simply stated that engagements with investors are ongoing and that they have until late 2027 to list under their current SEBI approval. The final timing will likely depend on several factors: achieving better financial metrics, a more favourable valuation environment, and the company's success in demonstrating a clear path to profitability to public market investors.
Unclear: The Path to Profitability
While Zepto's growth is undeniable, its profitability remains a major question mark for investors. The company's losses have continued to grow alongside its revenue, widening to nearly ₹6,000 crore in the 2026 fiscal year. This high cash burn is a key concern for public market investors, who are increasingly focused on sustainable profits rather than just rapid expansion. Zepto argues that its per-order losses are decreasing and that its massive investments in dark stores and technology will lead to better unit economics over time. It is also building a high-margin advertising business. However, the exact timeline for when the company will turn a profit is still unclear and a key factor that will determine its future valuation.
