Private equity giants aim to boost Indian investor stake in Zepto
Zepto, the Bangalore-based online grocery delivery startup, is currently in discussions for a secondary share sale aimed at raising up to $250 million. This strategic move is designed to increase the ownership of Indian investors in the company before its anticipated public listing later this year. The sale comes as part of Zepto’s preparation for its much-awaited initial public offering (IPO), expected sometime in late 2025 or early 2026.
According to sources familiar with the matter, Motilal Oswal Financial Services and Edelweiss Financial Services—two prominent private equity firms—are in talks to acquire stakes in the company through this secondary sale. Notably, the transaction will not infuse fresh capital into Zepto but will instead allow employees and select existing investors to sell their shares.
The deal, which is projected to value Zepto at over $5 billion, aligns with the company’s valuation during its most recent funding round last year. Currently, around 33% of Zepto’s equity is owned by Indian investors, with co-founders Aadit Palicha and Kaivalya Vohra holding a significant portion. The company aims to increase the Indian shareholding to 50% before its IPO.
While secondary share sales can stir debate—particularly as they enable early investors and employees to liquidate shares before an IPO—this transaction has been seen by many as a way to reward those who have supported Zepto’s journey, while simultaneously bolstering the company’s commitment to Indian stakeholders.
Zepto operates in a highly competitive and price-sensitive grocery delivery market in India, where it competes against established players like Amazon India, Swiggy, and Zomato. Despite the intense rivalry, Zepto has rapidly carved a niche for itself, thanks to its unique approach and strong backing from investors.
Founded in 2021 by childhood friends Palicha and Vohra, who dropped out of Stanford University to pursue their entrepreneurial vision, Zepto has rapidly grown into one of India’s most talked-about startups, drawing significant attention ahead of its IPO.
