Motilal Oswal Financial Services has invested ₹400 crore in Zepto by acquiring 7.6 crore compulsorily convertible preference shares in an all-cash deal
The investment is part of Zepto’s ongoing strategy to increase its domestic shareholding ahead of its planned IPO
Other recent domestic infusions include ₹7.5 crore from Elcid Investments and ₹25 crore from MapmyIndia
Zepto Bags ₹400 Cr from Motilal Oswal Financial Services Ahead of IPO
Zepto has secured ₹400 crore from Motilal Oswal Financial Services in an all-cash deal, furthering its effort to boost domestic ownership ahead of an IPO planned for 2026. The investment is part of MOFSL’s long-term treasury portfolio and comes alongside fresh infusions from Elcid Investments and MapmyIndia
Zepto Bags ₹400 Cr from Motilal Oswal Financial Services Ahead of IPO
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Quick commerce major Zepto has raised ₹400 crore from financial services firm Motilal Oswal Financial Services Ltd (MOFSL) in all-cash transaction, the company said in an exchange filing on Wednesday.
MOFSL has acquired 7.6 crore compulsorily convertible preference shares of the start-up. The company stated that the purchase is part of its treasury investment portfolio, which is aimed at delivering sustainable and long-term returns.
The latest fundraise came after a non-banking finance company (NBFC) Elcid Investments invested an additional ₹7.5 crore in the quick commerce giant. In addition, MaymyIndia also announced its plans to join Zepto’s cap table with an investment of ₹25 crore.
In May, MOFSL founders Motilal Oswal and Raamdeo Agrawal bought Zepto shares worth $100 million. This was a part of a larger $350 million funding round, with the balance raised from Motilal Oswal’s clients, among them several domestic family offices.
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These funding rounds came in a backdrop of Zepto’s push to reduce foreign ownership before going public. Initially, Zepto had plans to launch IPO (initial public offering) in 2025. However, the plan has been shifted to next year.
As a part of IPO process, the quick commerce start-up has done a bonus issuance, changed its name to ‘Zepto Private Limited’. It has also chosen bankers “Goldman Sachs, Morgan Stanley and Axis Capital” to pursue the listing.
The IPO timeline has reportedly been extended multiple times, with internal discussions highlighting the need for stronger financial metrics before pursuing a public listing.
Currently, Zepto aims to increase its domestic ownership to over 50% before listing. The start-up’s early foreign investors are diluting their stake, offloading 10–15% of their holding. Zepto’s domestic shareholding stands at 18%, but this percentage is expected to surpass 20% after the secondary deals. It is pertinent to note that Zepto’s last funding round was also led by domestic investors.
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The quick commerce platform is yet to reveal its FY25 financial result. In FY24, the unicorn managed to double its revenue YoY to ₹4,454.52 crore, and its net loss remained almost flat at ₹1,248.64 crore.
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