The All India Consumer Products Distributors Federation (AICPDF) on Monday cautioned retail investors against investing in IPOs of “persistent loss-making” quick-commerce companies. The industry body, which represents 4.5 lakh FMCG distributors, reiterated its demand for the government and SEBI to immediately review the regulatory framework governing such public issues. It has also urged FSSAI to prescribe mandatory storage standards for quick-commerce dark stores.Referring to the recent development of Zepto’s targeted valuation witnessing a drop, the Federation said it believes that the reported gap between the valuation sought by the company and the valuation reportedly considered appropriate by several institutional investors raises important questions that deserve careful regulatory scrutiny before any public issue proceeds.“AICPDF has urged SEBI and the Government of India not to permit any IPO of a persistent loss-making quick-commerce company without the highest standards of scrutiny, transparency and investor protection,” the statement added.It added that “aggressive discount-led competition” from quick-commerce platforms has placed enormous pressure on India’s traditional retail ecosystem. “Lakhs of neighbourhood kirana stores, wholesalers, distributors and small businesses have experienced severe financial stress, while millions of livelihoods connected with the general trade ecosystem have come under increasing pressure,” it added.The Federation also expressed concern regarding reports of delayed payments to suppliers, vendors and business partners associated with loss-making quick-commerce companies.“India cannot claim success by creating one digital job while destroying multiple sustainable livelihoods across its traditional retail economy,” it added.AICPDF has urged the Ministry of Finance, the Ministry of Commerce & Industry and SEBI to conduct a comprehensive review of the valuation methodologies adopted by persistent loss-making companies seeking IPO approval. It has also asked that there should be “significantly stricter scrutiny” before permitting IPOs of companies that have yet to demonstrate sustainable operational profitability.A National Policy for the Protection of General Trade should also be framed to ensure a level playing field between digital commerce and neighbourhood retail, it added.Noting that mandatory storage norms for all quick-commerce dark stores should be established, it added that many dark stores operate in highly congested premises where 60,000 to 70,000 SKUs are stored within limited floor space, leading to unsafe storage practices, improper segregation of products, restricted movement, inadequate ventilation, and increased risks of food contamination, pest infestation, product damage and compromised hygiene.“As a regulatory norm, FSSAI may prescribe a minimum requirement of 20,000–25,000 square feet for such facilities, subject to scientific validation and category-specific requirements,” it added.“AICPDF is prepared, if necessary, to organise a peaceful nationwide agitation, including a demonstration before SEBI Headquarters, demanding stronger regulatory accountability and stricter IPO norms for persistent loss-making companies,” it claimed.Published on August 3, 2026