Zepto Delays IPO, WazirX Restructuring Plan Rejected, and Centre Eases SEZ Norms

In one of the hottest IPO frenzies that we have seen, Zepto was supposed to be star representative of the the quick-commerce sector. Its initial plan was a $450 million issue, which was later bumped up to approx. $1 billion. The unicorn had been aiming for an IPO in 2025, has paused its plans. The new target is 2026. This points to something more substantial than just a 1-year delay.

For startup boards, making the right move at the right moment is paramount. The initial reaction to the IPO pause has been that Zepto is facing challenges in its decision-making. However, in our experience tracking IPO-bound startups, this move doesn't come from fear. It’s rather a strategic decision. Let’s dive in.

Zepto’s FY24 loss stood at ₹1,248.64 crore, even as revenues doubled to ₹4,454.52 crore. Strong top-line, yet profitability remains elusive. Just a few months ago, the company was reportedly burning ₹35-40 crore monthly, and in May 2025, that number had risen to ₹250 crore.

Success in the 10-minute grocery delivery space hinges on four expensive elements: dark stores, logistical expertise, good talent, and deep discounts. CEO Aadit Palicha claims to have reduced burn by 65% and improved EBITDA margins by 20% since January 2025. But it still missed internal Q1 targets on revenue and cost control. Aadit should understand that the markets have long memories and short patience.

Zepto's public image and internal operations have also suffered. The Maharashtra FDA shut down its Dharavi warehouse after spotting food saefy violations. On the other hand, 44 Zepto Cafe locations were closed due to supply chain issues. Then came labor union complaints, and accusations of using "dark patterns" to mislead customers and merchants. These are troubling signs. We have seen fate of OYO and Paytm when corporate governance concerns surfaced just before their IPOs.

Recently, Zepto has made some big changes. They have reverse flipped to India and brought in Akhil Gupta as a new independent board member. They've also changed their company structure, putting ownership into a new Indian company called Zepto Marketplace Pvt Ltd, which means Indians now own a larger share of the company. However, they are now planning to raise money from private investors so they have time to improve their business. This includes improving their operations, dealing with controversies, and getting everything in order.

We have seen something similar with Boat in 2022, when it pulled back its ₹2,000 crore IPO and chose to raise private funds from Warburg Pincus and Malabar. OYO's IPO has been delayed for a long time because they have been dealing with questions from SEBI and fixing their financial records. Even Paytm, which did list in 2021, became a cautionary tale. Priced at ₹2,150, its shares dropped 27% on debut. The company struggled due to governance issues, lack of profitability, and inflated valuations. Zepto’s board has been watching all this, and making decisions.

Zepto must also be dealing with investor pressure. Most investors aim to sell their holdings for a profit within a 7-to-10-year timeframe. Ola Electric launched a ₹6,145 crore IPO despite profitability concerns, mainly to satisfy SoftBank and others. We are sure that Zepto's early investors are looking for a return, but pushing for their profits too soon might damage Zepto’s future value.

Going public isn't a bad thing; it has brought positive outcome for companies that have done things correctly. This means being open about their finances, running their operations efficiently, and not cutting corners. Zepto's decision to wait might give it the opportunity to list on the stock market confidently, if they steer properly from here.

The race among quick-delivery apps is heating up. Blinkit is getting a lot of attention, while Instamart and Flipkart are stepping up their efforts. While Zepto is reorganizing, it must remain aggressive. We'll have to wait and see if Zepto's delay helps or hurts them.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Ye Toh Gadbad Ho Gayi Godbole”: Singapore HC Rejects WazirX Restructuring Plan

WazirX just hit a legal wall - Singapore’s High Court has turned down its restructuring plan to refund users after last year’s massive $230 million hack.

The crypto exchange broke the news on X, leaving users in suspense yet again. With the court’s moratorium period now expired, it’s back to legal limbo for WazirX.

Read more here

“Ab Ye Karke Dikhao”: BimaPay Finsure launches premium financing for corporate insurance policies

BimaPay Finsure just made corporate insurance a lot more wallet-friendly - its new pilot lets businesses pay hefty premiums in easy EMIs, no collateral needed.

From group medical to fire and accident coverage, it’s all about flexibility now. With a target of ₹20–30 crore in premiums for FY26, a national rollout could be next if the pilot clicks.

Read more here

“Sapno Ko Badi Udaan”: Centre Eases SEZ Norms To Boost Chips, Electronics Manufacturing

India just gave its chip dreams a size-down boost - the Centre has slashed SEZ land requirements for semiconductor and electronics units from 50 to just 10 hectares.

Even multi-product SEZs got a trim, now needing only 4 hectares. Add to that a potential $4B design-linked incentive on the horizon, and it’s clear: India wants to be the new silicon hotspot.

Read more here

“Swagat Nahi Karoge Humara”: Bessemer Ropes In Pankaj Mitra To Lead India Investments In AI & SaaS

Bessemer just dialed up its India game by bringing on Pankaj Mitra to lead investments in AI, SaaS, and cybersecurity.

With over 20 years under his belt and degrees from IIT Kharagpur and UC, Mitra's no rookie in the venture world. His appointment rides the momentum of Bessemer’s freshly closed $350M India fund - clearly, big bets are coming.

Read more here

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