Zepto Looking To Further Increase Domestic Shareholding: Report

SUMMARY

Multiple options are on the table, including founders raising a debt of $100 Mn to $150 Mn to buy shares from existing investors

Zepto, along with its investors, is also said to be considering setting up an Indian alternative investment fund to transfer part of its overseas shareholding

This comes amid growing scrutiny of quick commerce platforms in the country and ahead of Zepto filing its IPO papers

Aadit Palicha, founder and CEO of IPO-bound Zepto, is reportedly looking to further increase domestic shareholding in the quick commerce company.

Multiple options are on the table, including founders raising a debt of $100 Mn to $150 Mn to buy shares from existing investors, ET reported, citing sources.

Meanwhile the company, along with its investors, is also said to be considering setting up an Indian alternative investment fund (AIF) to transfer part of its overseas shareholding.

Inc42 has reached out to Zepto for comments on the development. The story will be updated on receiving a response.

An AIF is a privately pooled investment vehicle that collects funds from investors in accordance with a defined investment policy.

“One of the proposals is a new AIF that can be set up and run by a local GP (general partner), where the shareholding of a foreign fund can be transferred. This has happened before, and they are considering that,” the report quoted a source as saying.

Besides, the company is also expanding its ESOP pool. Overall, it is looking at increasing domestic shareholding in the company by about 8% before it files its draft papers for its initial public offering (IPO) via confidential route.

However, there are no plans for a primary funding round currently, the report said.

This comes amid growing popularity and scrutiny of quick commerce platforms in the country. Last week, the All India Consumer Products Distributors Federation (AICPDF) filed a petition with the Competition Commission of India (CCI) against Zepto, Blinkit, and Swiggy Instamart, alleging that they are employing unfair pricing policies and are monopolising the market.

As part of its plans to increase domestic shareholding, Zepto was earlier said to have approached top mutual fund houses for a $300 Mn share sale ahead of its IPO.

This comes after the company raised a whopping $1.3 Bn last year. It last secured $350 Mn in November 2024 from domestic investors in a round led by Motilal Oswal’s private wealth division.

On the IPO front, Zepto was said to be looking to increase its public offering size to $800 Mn–$1 Bn, including secondaries.