Investment firm Motilal Oswal pours Rs 400 crore into rapid delivery startup Zepto, which operates on a 10-minute service basis and is considered a unicorn in the industry.

Motilal Oswal Investments Boost Zepto's Funding Amid Expansion Plans

Zepto, the Mumbai-based startup co-founded by Aadit Palicha and Kaivalya Vohra, has secured a significant investment of Rs 400 crore from Motilal Oswal Financial Services Ltd. This fresh infusion of funds comes amid a flurry of fundraising activity by Zepto, as the company aims to raise $450 million to $500 million in primary capital.

The investment resulted in Motilal Oswal acquiring 7.54 crore compulsorily convertible preference shares, according to filings. This is Motilal Oswal's latest bet on Zepto, following their participation in a $350 million round in November 2024. The transaction was part of Motilal Oswal's treasury investment book aimed at generating long-term returns.

The round is expected to be anchored by existing backers General Catalyst and Avenir Growth, but the names of the institutions involved as investors alongside them are not publicly available.

Zepto has recently broadened its portfolio beyond groceries and prepared foods, launching Zepto Pharmacy in select areas such as Mumbai, Bengaluru, Delhi NCR, and Hyderabad. This move mirrors efforts by rivals Blinkit, Swiggy Instamart, BigBasket, and Flipkart Minutes to expand product categories and strengthen store networks.

Earlier this month, MapMyIndia committed Rs 25 crore for a stake in Zepto and also entered into a business partnership. The partnership involves integrating MapMyIndia's mapping SDKs and APIs, which is expected to enhance Zepto's logistics and delivery capabilities.

Filings show Zepto achieved turnover of Rs 11,110 crore in FY25 ($1.3 billion), marking a significant growth from the Rs 4,454.5 crore revenue reported for FY24. This represents more than doubling from the Rs 2,024.4 crore in revenue reported for FY23.

Zepto is actively courting Indian institutional investors and family offices to boost domestic ownership ahead of a planned IPO, now deferred to 2026. The post-money valuation for Zepto is expected to be $7 billion, reflecting the company's strong financial performance and growth potential.

While no new information about Motilal Oswal Financial Services Ltd.'s investment in Zepto was provided in the current paragraph, the investment is a testament to the confidence investors have in Zepto's future growth and success. Elcid Investment also purchased Rs 7.5 crore worth of shares in Zepto at a valuation exceeding $5 billion, further underscoring the company's potential.

As Zepto continues to expand and innovate, it is poised to make a significant impact in the Indian e-commerce landscape. The company's focus on customer experience, convenience, and rapid delivery, combined with its strategic partnerships and ongoing fundraising efforts, make it a company to watch in the coming years.