Motilal Oswal Financial Services Ltd (MOFSL) has invested Rs 400 crore in Zepto, the quick commerce startup. The investment was made through the acquisition
of 7.54 crore compulsorily convertible preference shares, according to a regulatory filing dated August 12. The cost of acquisition is worth Rs 400 crores.
The person familiar with the matter told ET that this investment is a part of a 1,000 crore funding round by Zepto. He further told ET that, "Motilal Oswal has invested Rs 400 crore via secondaries and another Rs 600 crore is expected to come in from domestic investors, who will buy shares from Zepto's foreign investors."
The round reportedly values Zepto at approximately USD 5.4 billion (₹47,298 crore), according to ET.
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Primary Round in Progress
Seraptely, Zepto is finalising a new primary funding round led by existing investors General Catalyst and Avenir Growth. As part of this round, the company's founders plan to contribute Rs 1,500 crore, which they are raising through debt financing from Edelweiss Alternative Asset Advisors, domestic family offices, and smaller credit funds, as reported by ET.
MOFSL’s pre-existing stake
Before this transaction, MOFSL’s promoter group already held 48,720 preference shares in Zepto. The latest investment does not require any regulatory approvals, and completion is expected within 15 days, the filing noted.
Notably, ET NOW first reported on May 12 that Zepto was nearing closure on a round involving Motilal Oswal and other investors.
About Zepto
Zepto (formerly known as Kiranakart Technologies Private Limited) was founded in 2021 by Aadit Palicha and Kaivalya Vohra. The company operates in multiple Indian cities and offers a wide range of products, including fresh produce, daily essentials, and more.
Its turnover of the company has surged from Rs 140.7 crore in FY22 to Rs 4,454.5 crore in FY24, reflecting the sector’s explosive growth, the exchange filing said.
Earlier this year, ET NOW had reported that Zepto is expected to enter the public markets with an Initial Public Offering (IPO) later this year (2025) or early 2026, although the exact timeline for the launch has not yet been finalised. Indian shareholders presently own over 33 per cent of Zepto's capital, with founders Aadit Palicha and Kaivalya Vohra owning almost one-fifth.
