Zepto logo is seen displayed in this illustration.
Credit: Reuters Photo
By Saikat Das
The founders of Indian quick commerce company Zepto Marketplace Pvt. are planning to raise Rs 1500 crore ($176 million) in a private credit deal that will offer investors as much as 16 per cent yield, according to people familiar with the matter.
They plan to issue rupee-denominated bonds with tenors ranging between two-to-four years, the people said, asking not to be identified as the information is private. The deal could close as early as end-June, and the terms have not yet been finalized, they added.
EAAA India Alternatives Ltd. will buy half of these bonds while smaller funds, wealthy individuals and family offices will acquire the remainder, the people said.
The money will be used to acquire Zepto shares from existing foreign investors to help increase domestic ownership ahead of its planned initial public offering the people said. The Economic Times first reported on the deal Monday.
Zepto is among the scores of companies competing in India’s ultra-competitive grocery delivery space, where foreign investment is tightly regulated. If it goes through, the deal would be among the larger private debt transactions in local currency this year.
EAAA declined to comment. Representatives for Zepto did not respond to a request for comment.