Zepto expands ESOP pool by $170 million to over $500 million

The company has allotted an additional 39.4 lakh options to its existing employee stock ownership scheme, bringing the total pool to about 1.23 crore options

Quick commerce unicorn Zepto has expanded its employee stock option (ESOP) pool by $170 million (around Rs 1,495 crore), taking the total value of its option pool to over $500 million, according to recent filings with the Registrar of Companies (RoC).

The company has allotted an additional 39.4 lakh options to its existing employee stock ownership scheme, bringing the total pool to about 1.23 crore options, the filings, sourced via the Kredible, show.

Following this expansion, the aggregate value of Zepto’s ESOP pool now stands at roughly $527 million (roughly Rs 4,637 crore) — one of the largest among Indian consumer internet startups.

The move comes on the heels of the company’s $450 million Series H funding round, first reported by Moneycontrol, which values Zepto at $7 billion, up from $5 billion last year.

What is the purpose of the loan to the ESOP trust?

Alongside expanding the pool, Zepto has also approved an interest-free loan of Rs 700 crore to its employee welfare trust to facilitate subscription and purchase of shares on behalf of employees. The loan is aimed at helping workers exercise vested options without an upfront financial burden.

The decision signals Zepto’s growing focus on employee wealth creation and retention as it scales operations and looks to strengthen its leadership and engineering teams across India.

Why is Zepto expanding its ESOP pool now?

The expansion makes Zepto one of the few late-stage Indian startups to cross the half-a-billion-dollar mark in ESOP value, underscoring its push to attract and retain senior talent as competition in the quick commerce segment intensifies.

Founded by Aadit Palicha and Kaivalya Vohra, Zepto has been on an aggressive growth path since its launch in 2021, rapidly expanding its 10-minute delivery network across metros. The company’s latest fundraise has provided it with capital to widen store reach, boost efficiency, and invest in workforce expansion.

The increased ESOP allocation, coupled with a liquidity support mechanism through the trust, is expected to give Zepto more flexibility to reward employees and offer partial cash exits as it prepares for its next phase of growth.

How does this compare with industry trends?

Several late-stage startups have recently ramped up their stock option pools ahead of potential listings or secondary share sales. Zepto’s move follows a broader trend among Indian tech firms — including logistics, fintech, and food delivery players — to use expanded ESOPs as both a retention lever and a pre-IPO incentive tool.

With its enlarged pool, Zepto now joins the ranks of startups like Zomato and Swiggy in offering some of the largest employee ownership programmes in India’s consumer internet sector.