IPO Bound Zepto Expands ESOP Pool by $170 Million

Quick commerce unicorn Zepto has expanded its employee stock option (ESOP) pool by $170 million (₹1,495 crore), taking the total value of its pool to more than $500 million (₹4,637 crore), according to filings with the Registrar of Companies (RoC). 

The move comes as the Bengaluru-based startup prepares for a potential initial public offering (IPO) in early 2026 and seeks to strengthen employee retention amid intensifying market competition.

Key Development

Zepto has allotted 39.4 lakh new stock options, expanding its ESOP pool to 1.2 crore options in total. The company has also approved an interest-free loan of ₹700 crore ($84 million) to its employee welfare trust, allowing staff to exercise vested shares without upfront financial strain.

This development follows Zepto’s $450 million (₹3,955 crore) funding round led by CalPERS, which lifted its valuation to $7 billion, marking a 40% rise from the previous year. With roughly $900 million in net cash reserves, the startup is well-positioned to sustain its rapid expansion, CEO Aadit Palicha said earlier.

Financial and Strategic Outlook

In FY25, Zepto’s revenue surged 149% year-on-year to ₹11,100 crore, while its FY24 losses stood at ₹1,248.6 crore. The company has raised around $2.5 billion so far and aims to file its IPO papers with SEBI by early 2026, targeting a public issue worth $800 million.

The ESOP expansion underscores Zepto’s push to retain key talent and align employee interests with its long-term growth plans as it navigates a competitive quick commerce landscape.

Read More: Zepto Secures $450 Million from CalPERS at $7 Billion Valuation, Eyes to File IPO Soon

Conclusion

Zepto’s ESOP expansion and employee loan initiative mark a strategic shift toward long-term sustainability, as the unicorn balances rapid scale with financial discipline in preparation for its much-anticipated IPO.

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