India’s quick commerce darling Zepto has decided to hit the brakes on its much-anticipated IPO journey, shifting its listing plans to 2026 — a year later than previously expected. This change of course comes as the startup grapples with tough operational realities and a renewed focus on profitability.

Earlier, co-founder and CEO Aadit Palicha had hinted at a 2025 debut on the public markets. But as per a Moneycontrol report, those ambitions are now on hold, with internal conversations at Zepto pointing to the need for sharper financial metrics before stepping into the limelight.

For now, Zepto is going back to the basics — cutting cash burn, tightening margins, and holding off on aggressive expansions.

One of the visible signs of this pivot is the quiet retreat of Zepto Cafe, the startup’s food service arm, from several North Indian cities. Cafes have shut doors in Agra, Chandigarh, Meerut, Mohali, and Amritsar — impacting over 400 employees. According to industry insiders, the company was burning through a staggering ₹250–300 crore per month toward the end of 2024, prompting the need for sharper fiscal discipline.

Despite the scaled-back expansion, the company hasn’t entirely lost steam. Palicha and team are now in the final stages of securing a ₹1,500 crore ($175 million) structured debt deal from Edelweiss Alternative Asset Advisors and other investors. Sources say the fresh funds will be used primarily to buy back shares from foreign stakeholders — a strategic move to boost Indian ownership before the eventual IPO.

While Zepto declined to comment on the developments, it’s clear that the startup is now focused on building a stronger, leaner business — one that can stand up to the scrutiny of public markets when the time is right.

For now, India’s youngest unicorn is trading speed for sustainability.