Kapoor was born on March 3, 1987 in Mumbai. She is the daughter of actors Shakti Kapoor and Shivangi Kolhapure Kapoor. She is the sister of actor Siddhanth Kapoor, niece of actresses Padmini and Tejaswini Kolhapure and grandniece of singers Lata Mangeshkar, Asha Bhosle, Meena Khadikar and Usha Mangeshkar. On her father's side, Kapoor is of Punjabi descent, and on her mother's side, she is of Marathi ancestry. Like her mother, she has stated that she is a complete Marathi.