Zepto Plans to Increase Indian Investor Stake to 50% Before IPO. The company is considering selling shares worth up to $250 million, benefiting investors and employees.
Zepto IPO: India's leading online grocery delivery company, Zepto, is planning to allow its existing shareholders to sell shares worth up to $250 million. This move aims to increase the stake held by Indian investors, facilitating the company's planned IPO later this year or early 2026.
Focus on Increasing Indian Investor Stake
Zepto will not raise any new capital through this process; instead, employees and some existing investors will have the opportunity to sell their shares for cash. The company will conduct this transaction at the $5 billion valuation achieved in its last funding round last year.
Currently, Indian investors hold a 33% stake in Zepto, including approximately 20% held by co-founders Aadit Palicha and Kaivalya Vohra. Zepto aims to increase this proportion to 50%.
Attractive Opportunity for Employees and Investors
Pre-IPO share sales are sometimes considered controversial, as they can potentially reduce management and employee enthusiasm for growing the business. However, in recent years, this process has been increasingly viewed as a way to reward employees and allow early investors to realize profits.
By offering employees the chance to sell shares, Zepto is empowering them financially. This will strengthen the company's capital structure and significantly increase the stake held by Indian investors.
Zepto's Competition and Growth
Zepto operates in India's highly competitive grocery delivery market, competing with major players like Amazon India, Swiggy, Zomato, and Tata Group's BigBasket.
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, who dropped out of Stanford University's computer science program to launch the startup, Zepto has experienced rapid growth within three years and is now progressing towards an IPO.
