Motilal Oswal Co-Founders Invest in Zepto with $100 Million Share Purchase

Motilal Oswal Financial Services co-founders Motilal Oswal and Raamdeo Agrawal have jointly acquired $100 million worth of shares in India’s fast-growing quick commerce startup, Zepto. This strategic investment supports Zepto’s push to increase domestic ownership ahead of its highly anticipated initial public offering (IPO).

$100 Million Infusion from Oswal and Agrawal

In a significant secondary share transaction, Motilal Oswal and Raamdeo Agrawal have each invested $50 million in their personal capacities. This move adds to a growing list of domestic backers supporting Zepto’s rapid growth. Sources confirm that the investment is part of Zepto's broader strategy to strengthen Indian ownership in the company.

Ramping Up Domestic Shareholding Before IPO

Zepto is actively working to raise its domestic ownership to 50% before launching its IPO. With this latest transaction, domestic shareholding is expected to rise from its previous levels to around 35%. While not a regulatory requirement, increased domestic ownership offers operational advantages and decision-making flexibility.

Talks Underway for Additional $250 Million Secondary Round

According to sources, Zepto is also in discussions with financial institutions like Hero FinCorp and Edelweiss for an additional $250 million secondary fundraising round. These discussions underline continued investor interest in India’s burgeoning quick commerce market and Zepto’s positioning within it.

Shares Acquired from Foreign Investors at $5 Billion Valuation

The shares purchased by Oswal and Agrawal come from existing international investors such as Lachy Groom and Rocket Internet. The deal has been executed at a valuation of $5 billion — the same valuation at which Zepto raised $350 million in November 2024 from domestic players including Sachin Tendulkar, Abhishek Bachchan, and Motilal Oswal’s private wealth division.

Why Zepto Is Maintaining Its $5 Billion Valuation

Maintaining a consistent valuation of $5 billion is a deliberate decision. According to insiders, this valuation was kept unchanged to make the investment more attractive for domestic buyers, helping to push forward the company’s localization strategy ahead of the IPO.

Strategic Benefits of Higher Indian Ownership

Although the 50% Indian-owned and controlled company (IOCC) structure is not mandated by law, companies with higher domestic ownership enjoy greater regulatory and operational autonomy. This structure also aligns better with government expectations and public sentiment around indigenous innovation and control.

Competitor Moves: Blinkit Becomes IOCC

Zepto's rival, Eternal, the parent company of Blinkit, recently achieved IOCC status and is now working toward owning inventory directly rather than using a marketplace model. This move is expected to increase operational resilience and supply chain control.

Swiggy's Instamart Opts for Marketplace Model

In contrast, Swiggy has clarified that it has no immediate plans to convert its quick commerce arm, Instamart, into an IOCC. During a recent analyst call, CFO Rahul Bothra explained that the financial benefits do not justify the shift, citing inventory holding as a major consideration that could affect the company’s balance sheet.

Zepto’s Ongoing Fundraising Momentum

Since its market debut in 2021, Zepto has aggressively pursued capital to fuel its expansion. In 2024 alone, it raised approximately $1.35 billion. These funds are being channeled toward expanding Zepto’s dark store network and capturing a greater share of the rapidly evolving q-commerce market in India.

Market Position: Zepto Closes Gap with Blinkit

Despite entering the market later than its competitors, Zepto has quickly gained ground. As of early 2025, Blinkit leads the space with 1.65–1.75 million daily orders. Zepto follows closely with 1.45–1.55 million daily orders, while Swiggy’s Instamart serves 1.05–1.15 million daily orders.

Conclusion

With substantial investments from influential Indian investors like Motilal Oswal and Raamdeo Agrawal, Zepto is not only fortifying its domestic ownership but also strengthening its position in India’s highly competitive quick commerce space. The upcoming IPO could mark a pivotal moment in the company's growth journey.