Bengaluru-based quick commerce startup Zepto is facilitating a secondary share sale worth up to $250 million to enhance Indian investor participation ahead of its anticipated Initial Public Offering (IPO) in late 2025 or early 2026. The transaction, which involves no fresh capital infusion, will allow early investors and employees to partially liquidate their holdings.
Private equity arms of Motilal Oswal Financial Services and Edelweiss Financial Services are reportedly in discussions to acquire shares from existing stakeholders. The deal is expected to maintain Zepto’s last round valuation of over $5 billion.
Currently, Indian shareholders own around 33 per cent of the company, while founders Aadit Palicha and Kaivalya Vohra collectively hold about 20 per cent. With the upcoming share sale, Zepto intends to push domestic ownership closer to 50 per cent, positioning itself more favorably ahead of its public market debut.
Though secondary share sales before an IPO can be contentious, they are increasingly seen as a tool to reward employee contributions and instill investor confidence.
Founded in 2021 by Stanford dropouts Palicha and Vohra, Zepto has rapidly grown in India’s competitive online grocery delivery space, contending with giants like Amazon India, Swiggy, Blinkit and BigBasket.
Zepto and Motilal Oswal have not commented on the ongoing deal discussions, while Edelweiss declined to issue a statement.
