Online grocer Zepto in talks for $250 million secondary sale ahead of IPO

Online grocer Zepto is in talks for current stockholders to sell as much as $250 million of their equity, a move aimed at boosting the ownership of Indian investors before the startup seeks to go public later this year.

The private equity arms of Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd. are in discussions with the Bangalore-based startup to buy shares in the secondary sale, according to people familiar with the matter, who asked for anonymity to speak about confidential matters.

Zepto won’t raise any additional capital in the process, but employees and some existing investors will be able to sell their shares for cash. The company expects to execute the transactions at a valuation of just over $5 billion, the same level as its most recent funding round late last year, the people said.

The move is part of Zepto’s plan to increase shareholding by Indian investors ahead of an initial public offering of shares later this year or early 2026, the people said. Indian shareholders currently account for about 33% of Zepto’s cap table, with founders Aadit Palicha and Kaivalya Vohra owning about a fifth of the firm. The goal is to lift that overall proportion to about 50%, one of the people said.