Zepto founders tap Edelweiss, others for Rs 1,500 crore structured debt to boost Indian ownership

Quick-commerce startup Zepto is bolstering its Indian ownership through a strategic financial move. The company’s founders have secured approximately Rs 1,500 crore in structured debt financing. This funding round involves several financial institutions, with Edelweiss playing a prominent role.

This structured debt isn’t equity investment, meaning it doesn’t dilute the founders’ existing stake. Instead, it provides Zepto with capital to pursue its growth trajectory while simultaneously aiming to increase Indian ownership within the company’s structure. The exact mechanisms for achieving this increased Indian ownership haven’t been publicly detailed, but the move suggests a focus on strengthening domestic investor participation.

The substantial amount secured highlights Zepto’s continued confidence in its business model and its ambition within the competitive Indian quick-commerce market. Securing debt financing, rather than seeking further equity, suggests a focus on maintaining control and potentially minimizing dilution as the company scales. This strategic decision will be closely watched by other startups navigating similar growth challenges and considering their capital structure. The success of this approach could influence the funding strategies of other Indian tech companies in the future. The details surrounding how this debt will specifically boost Indian ownership remain to be seen, but the move represents a noteworthy development in the Indian startup landscape.