Quick commerce major Zepto is reportedly in advanced discussions to raise around INR 1,500 crore (approximately $175.6 million) in structured debt, according to a report by The Economic Times citing sources familiar with the matter.
The report suggests that Zepto’s founders, Aadit Palicha and Kaivalya Vohra, are in talks with Edelweiss Alternative Asset Advisors, domestic family offices, and smaller credit funds to facilitate the deal. Edelweiss is said to have submitted a binding term sheet and is expected to anchor the raise by committing half the amount.
The loan reportedly carries a minimum interest rate of 16%, with an equity-linked upside that could enhance total returns to around 18%. The debt raise is also being executed at a valuation of nearly $5 billion, according to the sources cited.
Startup Story Media has reached out to Zepto for a comment on the development. This story will be updated if and when a response is received.
The debt deal, expected to close by July 2025, is aimed at helping Zepto consolidate its domestic shareholding by acquiring shares from existing foreign investors — a strategic move ahead of the company’s anticipated public listing. The structured debt will reportedly have a three-year term, with Edelweiss underwriting a significant portion of the loan.
This development follows earlier reports suggesting that Zepto was exploring avenues to raise $100 million to $150 million in debt to buy back shares from existing investors and increase domestic ownership.
Founded in 2021, Zepto has emerged as a leading player in India’s fast-growing quick commerce segment, competing with the likes of Blinkit and Instamart. The company’s efforts to shore up domestic ownership come amid an evolving regulatory landscape encouraging higher local participation ahead of IPOs.