Zepto In Talks To Raise INR 1,500 Cr In Debt: Report

Quick commerce giant Zepto founders Aadit Palicha and Kaivalya Vohra are reportedly in advanced discussion for around INR 1,500 Cr (around $175.6 Mn) structured debt. 

An ET report, citing sources familiar with the matter, said that the company is in talks with Edelweiss Alternative Asset, domestic family offices and smaller credit funds.

Edelweiss has submitted a binding bid, and the loan carries a minimum interest rate of 16%, with an equity-linked upside, enhancing the total returns to about 18%, the report said.

“Edelweiss has given a binding term sheet and will anchor the raise by committing half of the amount,” a source was quoted as saying in the report.

Sources also confirmed that the debt raise is being executed at a valuation of almost $5 Bn.

The company last raised $350 Mn in a round led by Motilal Oswal’s private wealth division at the same valuation in November 2024.

Zepto declined to comment on Inc42’s queries pertaining to the development.

With this debt, Zepto aims to acquire shares from its existing foreign investors to help consolidate its domestic ownership ahead of its planned public listing, the report said.

The deal is set for a period of three years, and is expected to close by July, where Edelweiss would underwrite the bulk of the loan.

The development comes over a month after reports surfaced that Zepto was looking to further increase domestic shareholding in the quick commerce company, where the founders were considering raising a debt of $100-150 Mn to buy shares from existing investors.

Earlier in March, eyeing to boost its domestic shareholding the quick commerce major was pushing existing investors to offload stakes worth $250 Mn, where private equity arms of Motilal Oswal Financial Services and Edelweiss Financial Services were named to be talks with the startup to buy its shares in a secondary share sale. 

Further, the company, being set on its path for market debut, recently changed the name of its registered entity to Zepto Private Limited from Kiranakart Technologies Private Limited, for which it received the regulatory nod from the Registrar of Companies.

On the financial front, Zepto doubled its revenue from operations to INR 4,454.52 Cr in FY24, from INR 2,025.70 Cr in FY23. Meanwhile, the company also trimmed its losses by 2% to INR 1,248.64 Cr in FY24 from INR 1,271.84 Cr in the previous fiscal year.