Zepto IPO Filing 2025 on Track: No Delay Despite FDA Suspension

As per news reports, Zepto, the Bengaluru-based quick commerce platform, is continuing its pursuit of a public listing despite facing a regulatory compliance issue. The company remains committed to filing its Draft Red Herring Prospectus (DRHP) by 2025. This development underscores its determination to remain IPO-ready and signals long-term resilience amidst scrutiny. The situation reflects the evolving landscape for Indian startups entering public markets, with the Zepto IPO filing in 2025 staying firmly on track.

Zepto IPO Plans Progressing Without Disruption

Zepto insiders have confirmed that the DRHP submission will take place in the 2025 calendar year. Reports suggesting delays have been dismissed by the company, which continues to push forward with its IPO process. The assurance helps maintain market interest and investor attention.

Fundraising Target Increased to $800 Million

Zepto has revised its initial target and now plans to raise $800 million through the IPO. This increase from the earlier $400 to the $500 million range reflects enhanced investor confidence and stronger valuation expectations. It also places Zepto in the league of top-tier startups aiming for significant capital inflow from public markets.

Conflicting Reports Create Market Buzz

Speculation around a delayed IPO emerged from a report that claimed Zepto might postpone its listing to 2026 due to internal delays and market dynamics. However, Aadit Palicha, co-founder and CEO of Zepto, refuted the claims and reaffirmed the company’s 2025 goal. Earlier in 2024, he had publicly stated that if market and business conditions remained favourable, a listing within 2025 would be pursued.

Regulatory Setback as FDA Suspends Licence

The Maharashtra Food and Drug Administration suspended the food business licence of Zepto’s parent entity, Kiranakart Technologies Pvt Ltd., following a facility inspection in Dharavi, Mumbai. This action brought fresh attention to the company’s compliance practices ahead of its IPO filing.

Key Violations Cited by Authorities

The inspection, led by FDA officials, including Minister of State for FDA Shri Yogesh Kadam, highlighted the following breaches:

• Food articles showing signs of fungal contamination
   
• Storage of items near areas with stagnant water
   
• Inadequate control of cold storage temperatures
   
• Wet and dirty floors with food placed directly on the ground
   
• Expired goods not kept separately from usable stock

These violations were found to contravene the Food Safety and Standards Act, 2006. A formal suspension was issued under Section 32(3) by Assistant Commissioner (Food), Smt. Anupamaa Balasaheb Patil.

Read More: Ahead of IPO, Motilal Oswal and Raamdeo Agrawal Invest $100 Million in Zepto! 

Resilience Amidst Compliance Challenges

Despite the setback, Zepto appears resolute in its public market ambitions. The firm’s continued focus on DRHP filing within the current year suggests a strategic commitment to overcome operational disruptions. How it addresses regulatory expectations will have a direct bearing on investor sentiment.

Conclusion

This year could define Zepto’s trajectory as it navigates business growth alongside compliance demands. The decision to push forward with IPO planning, while resolving food safety concerns, sets an example for emerging firms in the space. The company’s focus on transparency and operational discipline will likely influence its listing outcome.

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