Zepto In 2025: Lost Rhythm, Bleeding Coffers And A Fresh Shot At IPO |
Zepto has its own rhythm. Every fund-raising kicks off a cycle, starting with a period of hyper-expansion, followed by a deliberate consolidation phase to mend its unit economics, which leads it to the next round of capital inflow.
It paid off, making Zepto the third biggest force in India’s quick commerce market, which is expected to become a $40 Bn opportunity by 2030, after Swiggy Instamart and Zomato-run Blinkit. The strategy helped jack up the valuation of the company before every round of capital raise.
The cycle revolved twice or thrice every year until the brakes were slammed in 2025 after making just one full cycle, mopping up only $450 Mn, which was way below last year’s $1.3 Bn funding from three cycles.
It’s been a bumpy ride indeed for the quick commerce startup. Its ambitious $800 Mn-$1 Bn public float stayed in limbo and, what followed instead, was a turbulent year marked by delays, rollbacks, and strategic pivots. As 2025 winds down, Zepto finds itself battling numerous issues that roiled it through the entire year.
While the company postponed plans to file draft IPO papers with SEBI, it also had to scale down Zepto Cafe venture. An organisational restructuring cost it several key-level exits, push for automation left more than 500 without jobs, and it lost market share to Instamart and Blinkit. Its alleged dark-pattern practices and price manipulation too came under the regulatory scanner during the year.
The rhythm was lost, yet cofounder Aadit Palicha sounded upbeat when Inc42 caught up with him in December 2024. “Headwinds are natural in businesses. There’s enough room for us to revive and regain the momentum,” he had said. “We are going full throttle on growing the business with the $450 Mn we raised this year.”
What Derailed The IPO Plan In 2025
Zepto had internally targeted the April-June quarter for filing its DRHP. The strategy was clear: grow at a record pace till March, increase revenue run-rates, and file the papers when the numbers are their peak. But, as time ticked by, some earlier decisions began firing back.
After its late 2024 round, Zepto had switched to its typical hyper-expansion mode. It added nearly 110 dark stores to its network, expanded into various micro markets, and introduced features like quick exchange, to secure consumer stickiness. Palicha claimed Zepto clocked a gross order value of $3 Bn in December, which hit $4 Bn by April.
Rapid expansion comes with an equally rapid escalation in costs. According to Arc, Zepto spent INR 660 Cr in January alone and continued burning INR 450-480 Cr a month until March. The startup was heavily dependent on the Q4 FY25 numbers to propel the IPO filing. This time, however, Zepto’s rivals too went into........