According to the first-hand report of Moneycontrol, 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.
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.
According to the filing, Zepto’s revenue for FY24 was Rs 4,454.52 crore, more than doubling from FY23’s revenue of Rs 2,024.40 crore.
According to earlier reports from Moneycontrol, Zepto is negotiating a primary capital raise of $450–500 million with a post-money valuation of $7 billion. The new funding will support Zepto’s growth objectives as it postpones its initial public offering (IPO) until the following year in response to growing competition in the 10-minute delivery market in India.
With pro rata participation from other investors, current backers General Catalyst and Avenir Growth are anticipated to serve as the investment round’s anchors.
In an effort to increase domestic ownership prior to its initial public offering (IPO), Zepto co-founder and CEO Aadit Palicha has been aggressively pursuing Indian institutional investors and family offices in recent months. Early overseas backers like Rocket Internet have left, while Indian companies like Motilal Oswal and Ranjan Pai’s Calypond Capital have increased their shares through secondary share sales totaling more than $100 million.
As a result, Indian investors now own roughly 40 percent of Zepto. That percentage is anticipated to drop to about 35% after the current round concludes, though, as a sizable amount of the raise will be anchored by overseas institutional investors. Zepto has insisted that by the time it listings, it hopes to have a majority Indian ownership.
