AICPDF Demands Stricter IPO Scrutiny for Loss-Making Quick Commerce

The federation also called for a National Policy for the Protection of General Trade to ensure a level playing field between digital commerce and neighbourhood retail.

On storage standards, AICPDF noted that many dark stores operate in congested premises holding 60,000 to 70,000 SKUs within limited floor space. That leads to unsafe storage, improper segregation of products, restricted movement, inadequate ventilation, and higher risks of food contamination, pest infestation, product damage and compromised hygiene, it said. The federation proposed that FSSAI prescribe a minimum of 20,000 to 25,000 square feet for such facilities, subject to scientific validation and category-specific requirements.

AICPDF said it is prepared, if necessary, to organise a peaceful nationwide agitation, including a demonstration before SEBI's headquarters, demanding stronger regulatory accountability and stricter IPO norms for loss-making companies.

For investors, the federation's statement adds a layer of regulatory risk to the quick-commerce IPO pipeline. Zepto, which has been aiming for a public listing, now faces the prospect of heightened scrutiny from both the market regulator and the government. The federation's ability to mobilise its 450,000-member base – and the political weight of the traditional retail lobby – means the issue is unlikely to fade quietly.

What would reduce the risk. If quick-commerce companies can demonstrate a credible path to profitability, or if SEBI and the government resist the federation's calls, the IPO pipeline could resume without major disruption. AICPDF's demand for a national retail policy is a long-term ask that would require legislative action, something unlikely to move quickly.

What would make it worse. A further drop in Zepto's valuation, signs of financial stress among kirana stores, or a nationwide agitation by AICPDF could amplify the political pressure on SEBI and the government. Delayed payments to suppliers at any loss-making quick-commerce firm would also strengthen the federation's hand.

AICPDF's statement is the latest sign that the rise of quick commerce in India is creating a regulatory and political backlash that could shape the sector's access to public markets.