Zepto eyes $250 million secondary stock sale to boost Indian ownership ahead of IPO

India’s rapid-delivery grocery startup Zepto is in discussions for a $250 million secondary stock sale, aiming to increase Indian investor ownership ahead of its planned initial public offering (IPO) later this year or in early 2026, Bloomberg reported.

As per the report, the private equity arms of Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd. are in talks to acquire shares in the secondary sale. The move will allow employees and some existing investors to cash out, though Zepto itself will not be raising fresh capital.

The transactions are expected to take place at a valuation of over $5 billion, the same as Zepto’s last funding round in late 2024. Currently, Indian investors hold about 33% of Zepto’s shares, with founders Aadit Palicha and Kaivalya Vohra owning around 20%. The goal is to increase Indian ownership to approximately 50% before the IPO.

Reportedly, Zepto, Motilal Oswal, and Edelweiss have not publicly commented on the deal.

Strategic Move Amid Intense Competition Founded in 2021 by childhood friends Palicha and Vohra, who dropped out of Stanford’s computer science program, Zepto has quickly grown into a major player in India’s hyper-competitive, low-margin grocery delivery market. It faces stiff competition from Amazon India, SoftBank-backed Swiggy, publicly traded Zomato, and Tata Group’s BigBasket.

While secondary stock sales have sometimes been controversial—allowing early investors and employees to cash out before a public listing—such moves have also become a tool for rewarding employees and boosting morale. With its IPO plans on the horizon, Zepto is positioning itself to strengthen its investor base, signaling confidence in its long-term growth.