Motilal Oswal invests Rs 400 crore in 10-minute delivery unicorn Zepto

Motilal Oswal Financial Services Ltd. has invested Rs 400 crore in quick commerce unicorn Zepto, acquiring 7.54 crore compulsorily convertible preference shares in the Mumbai-based startup, according to a regulatory filing on August 12.

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The transaction, part of Motilal Oswal’s treasury investment book aimed at generating long-term returns, marks the firm’s latest bet on Zepto after participating in its $350 million round in November 2024.

The fresh infusion comes amid a flurry of fundraising activity by the 10-minute delivery company. Earlier this month, MapMyIndia committed Rs 25 crore for a 0.049% stake alongside a business partnership to integrate its mapping SDKs and APIs, while Elcid Investment purchased Rs 7.5 crore worth of shares at a valuation exceeding $5 billion.

Zepto, co-founded by Aadit Palicha and Kaivalya Vohra, has reportedly been in talks to raise $450 million to $500 million in primary capital at a $7 billion post-money valuation, with the round expected to be anchored by existing backers General Catalyst and Avenir Growth. The company has also actively courted Indian institutional investors and family offices to boost domestic ownership ahead of a planned IPO, now deferred to 2026.

For FY24, Zepto reported revenue of Rs 4,454.5 crore, more than doubling from Rs 2,024.4 crore in FY23. Filings show it achieved turnover of Rs 11,110 crore in FY25 ($1.3 billion).

The company has recently broadened its portfolio beyond groceries and prepared foods, launching Zepto Pharmacy in select areas of Mumbai, Bengaluru, Delhi NCR, and Hyderabad. The move mirrors efforts by rivals Blinkit, Swiggy Instamart, BigBasket, and Flipkart Minutes to expand product categories, strengthen store networks, and deepen brand partnerships to defend market share.