Shetty was born on 5 November 1992 to actor Sunil Shetty and director Mana Shetty in Mumbai. Her father is Tuluva and her mother is half Muslim and half Punjabi Kapoor.

Shetty studied at the prestigious Cathedral and John Connon School and later shifted to the American School of Bombay. While there, she participated in school plays alongside Shraddha Kapoor and Tiger Shroff. At the age of 18, she relocated alone in New York City to enroll at the New York Film Academy as she wanted to act in films.

In 2015, she made her acting debut in the romantic action film Hero. Produced by Salman Khan and directed by Nikkhil Advani, the film earned a total revenue of ₹33.37 crore (US$5.2 million). Shetty portrayed the role of a girl named Radha Mathur, who fell in love with a kidnapper who was paid to abduct her in order to extort her father. For her portrayal as Radha, she received Filmfare award nomination for the Best Female Debut.^[8] Bollywood Hungama, a leading website of India, wrote that ″Shetty needs some more time to improve her acting skills″.^[9] After her debut, she became the brand ambassador for the Indian franchise of Maybelline New York^[10] and featured in the Indian edition of high-profile magazine covers such as Cosmopolitan, Verve, Harper's Bazaar and many more.^[11][12][13]