Motilal Oswal Financial Services invests Rs 400 crore in Zepto

Motilal Oswal Financial Services invests Rs 400 crore in Zepto

Motilal Oswal Financial Services has invested Rs 400 crore in quick commerce unicorn Zepto, picking up 7.54 crore compulsorily convertible preference shares (CCPS) in the Mumbai-based startup. The transaction was the firm disclosed in a regulatory filing on August 12.

Motilal Oswal is an existing investor in Zepto and had particiapted in its funding round back in November 2024. Moneycontrol was first to report about Motilal's latest investment in Zepto in May.

The investment comes days after Zepto raised smaller rounds from strategic investors. Earlier this month, MapMyIndia (CE Info Systems) invested Rs 25 crore in Zepto alongside a business agreement to integrate its mapping SDKs and APIs to enhance customer and delivery experience. Shortly before that, Elcid Investment acquired Rs 7.5 crore worth of shares at a $5.9 billion valuation.

“We wish to inform the Exchanges that Motilal Oswal Financial Services Limited has acquired 7,54,97,341 Compulsorily Convertible Preference Shares of Zepto Private Limited (Formerly Known as Kiranakart Technologies Private Limited) for a consideration of Rs 400 crore,” the filing stated.

For FY24, Zepto reported revenue of Rs 4,454.52 crore, more than doubling from Rs 2,024.40 crore in FY23, according to the filing, the filing showed.

Moneycontrol had previously reported that Zepto is in talks to raise $450–500 million primary capital raise at a $7 billion post-money valuation. The fresh capital will bolster Zepto’s expansion plans as it defers its IPO to next year amid intensifying competition in India’s 10-minute delivery market.

The funding round is expected to be anchored by existing backers General Catalyst and Avenir Growth, with pro-rata participation from other investors.

Over the past few months, Zepto co-founder and CEO Aadit Palicha has actively courted Indian institutional investors and family offices to boost domestic ownership ahead of its IPO. Secondary share sales worth over $100 million have seen Indian entities such as Motilal Oswal and Ranjan Pai’s Calypond Capital increase their stakes, while early foreign backers including Rocket Internet have exited.

As a result, Indian investors now own roughly 40 percent of Zepto. However, once the current round closes, that figure is expected to dip to around 35 percent, as foreign institutional investors will anchor a significant portion of the raise. Zepto has maintained that it expects to become majority Indian-owned by the time it lists.

The quick commerce segment has seen heightened competitive activity from rivals including Blinkit (owned by Zomato’s Eternal), Swiggy’s Instamart, BigBasket, and Flipkart Minutes. Players are ramping up store networks, leveraging brand partnerships, and diversifying product categories to boost margins and defend market share.