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.

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

Through 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 Mn to $150 Mn to buy shares from existing investors.

(The story will be updated soon)

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