Zepto plans to Raise $250 Million in Secondary Sale before IPO Launch

Online grocer Zepto is planning to allow its current shareholders to sell up to $250 million worth of their shares. This step is intended to increase the participation of Indian investors before the company goes public later this year.

Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd. private equity divisions are reportedly in talks to purchase shares of the Bangalore-based startup Zepto in a secondary sale. This information comes from sources who requested anonymity due to the confidential nature of the discussions.

Zepto is not going to increase any extra capital in the process; instead, employees and some current investors will have the option to sell thier shares for cash. The company plans to complete these transactions at a valuation of just over $5 billion, which is the same as its last funding round late last year, as per the sources.

Zepto plans to offer shares worth $250 million to increase its Indian investor base before its IPO, expected later this year or in early 2026. Recently, Indian investors have held around 33% of the company, while founders Aadit Palicha and Kaivalya Vohra control approximately 20%. The aim is to raise Indian ownership to around 50%, according to sources.

Secondary stock sales have often been seen as controversial because they let managers and employees sell their shares before a company goes public or is sold. This can sometimes reduce their motivation to grow the business. However, recently, these sales have also become a way to reward employees, boost morale, and give early investors a chance to get some returns.

Zepto operates in India’s highly competitive and low-profit grocery delivery market. Its main competitors include Amazon India, Swiggy (backed by SoftBank Group), Zomato, and Tata Group’s BigBasket.