Zepto nears Rs 1,500 Cr structured debt deal ahead of IPO: Report

Quick commerce platform Zepto is reportedly finalising a Rs 1,500 crore ($175 million) structured debt deal with Edelweiss Alternative Asset and other investors.

According to an ET report, the funds will be used to buy back shares from foreign investors, increasing Indian ownership ahead of Zepto’s planned IPO.

Zepto is expected to file its IPO draft papers in mid-2025. The company has already secured approvals to shift its base from Singapore to India.

Edelweiss is expected to underwrite about half of the loan, while other domestic family offices and credit funds are expected to contribute the remaining Rs 750 crore.

The deal will value Zepto at around $5 billion, matching its last equity fundraising round when it raised $350 million, led by Motilal Oswal Private Wealth, in November last year.

The report added that founders Aadit Palicha and Kaivalya Vohra’s stake will rise from 18% to around 20%, while overall domestic shareholding could exceed 30%, aligning with Indian foreign direct investment rules.

Zepto is also close to completing a $250 million secondary share sale involving private equity firms like Motilal Oswal.

In a recent development, Palicha disclosed that the Mumbai-based firm is also close to hitting an annualized Gross Order Value (GOV) of $4 billion.