Zepto Eyes ₹1,500 Cr Structured Debt Deal with Edelweiss, Others to Boost Indian Ownership Ahead of IPO

Zepto founders Aadit Palicha and Kaivalya Vohra are in advanced negotiations with Edelweiss Alternative Asset, domestic family offices, and smaller credit funds to secure approximately ₹1,500 crore (over $175 million) in structured debt, the Economic Times reported.

The transaction is aimed at acquiring shares from existing foreign investors to help the quick-commerce company consolidate domestic control ahead of its planned initial public offering (IPO), according to sources.

Edelweiss has submitted a binding bid, the sources said, noting that the loan carries a minimum interest rate of 16% and includes an equity-linked upside that could boost total yields to approximately 18%.

People familiar with the deal told ET that it is being executed at a valuation of about $5 billion, consistent with Zepto’s valuation during its equity funding round last year.

The three-year transaction is expected to close by July, with Edelweiss underwriting the majority of the loan. “Edelweiss has provided a binding term sheet and will anchor the raise by committing half of the amount,” said a person familiar with the matter. “The remaining ₹750 crore is being raised from family offices and smaller credit funds, who are expected to participate on the same terms.”

Zepto $250M Secondary Sale

Previously, Zepto was reportedly in talks with its existing investors to sell up to $250 million of their stake, aiming to increase Indian investor ownership ahead of its planned IPO later this year, Bloomberg reported.

The Bengaluru-based startup is reportedly negotiating with the private equity arms of Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd. for a secondary share sale.

This move is part of Zepto’s strategy to enhance Indian investors’ ownership in the company before its IPO, scheduled for later this year or early 2026. Founders Aadit Palicha and Kaivalya Vohra currently hold about one-fifth of Zepto’s shares, with approximately 33% of the company’s capital from Indian investors. According to one source, the goal is to raise this proportion to roughly 50%.

Zepto Competition

Zepto operates in India’s highly competitive, low-margin grocery delivery market, facing off against major players like Amazon India and domestic competitors such as Swiggy Instamart, Zomato-backed Blinkit, and Tata Group-owned BigBasket.

Recently, the quick-commerce giant has ventured into the electronics sector by offering Apple products on its platform. Led by Aadit Palicha, Zepto has begun delivering iPads, AirPods, MagSafe accessories, and iPhone 16 models within minutes.

In an official statement, the startup reported a 35% month-on-month increase in users searching for Apple products on its platform.

Its competitors, Swiggy Instamart and Zomato-backed Blinkit, had already started providing rapid deliveries of iPhones and other Apple products.