Zepto plans $250M secondary share sale ahead of IPO By Elets News Network - 25 March 2025

Zepto

Bengaluru-based quick commerce startup Zepto is facilitating a secondary share sale worth up to $250 million, aiming to increase Indian investor participation ahead of its planned IPO later this year or in early 2026.

Investment firms including the private equity arms of Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd. are in talks to acquire shares from existing stakeholders. This transaction will not involve fresh capital infusion for Zepto but will allow employees and early investors to liquidate some of their holdings.


The valuation for this deal is expected to remain consistent with Zepto’s last funding round, at over $5 billion. Currently, Indian shareholders hold approximately 33% of the company, with founders Aadit Palicha and Kaivalya Vohra collectively owning around 20%. The firm aims to raise Indian ownership to nearly 50% before its public debut.

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Secondary sales of shares before an IPO can be contentious, as they allow early investors and employees to cash out ahead of a public listing. However, such transactions have increasingly become a means of recognizing employee contributions and maintaining investor confidence.

Zepto, which was founded in 2021 by Stanford dropouts Palicha and Vohra, operates in India’s fiercely competitive online grocery delivery market. The sector is dominated by major players such as Amazon India, SoftBank-backed Swiggy, Zomato-owned Blinkit, and Tata Group’s BigBasket.

Neither Zepto nor Motilal Oswal have commented on the ongoing discussions, while Edelweiss declined to provide a statement.

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