Shetty was born in Mangalore.  In 2016, during a visit to a fashion show in Dhaka, Shetty mentioned that her Bengali ancestors hailed from Sylhet in Bangladesh as well as her future plans on visiting her ancestral Sylheti homestead and acting in a Bangladeshi film. Her father Surendra and her mother, Sunanda are both manufacturers of tamper-proof water caps in the pharmaceutical industry. In Mumbai, Shetty attended St. Anthony Girls' High School in Chembur, Mumbai, and later attended Podar College in Matunga. A trained Bharatanatyam dancer, she was also captain of the volleyball team at school.