Motilal Oswal, Raamdeo Agrawal Personally Invest $100 Million in Zepto Secondaries

Motilal Oswal and Raamdeo Agrawal Individually Invest $50 Million Each in Zepto

In a significant move to boost domestic ownership in India’s fast-growing quick commerce sector, Motilal Oswal and Raamdeo Agrawal, founders of Motilal Oswal Financial Services Ltd (MOFSL), have personally acquired $50 million worth of shares each in Zepto, totaling $100 million (Rs 850 crore approx.). These shares were acquired from early-stage foreign backers, including Rocket Internet and Lachy Groom, as part of a broader secondary share sale initiative.

This personal investment comes at a time when Zepto is actively working toward restructuring its cap table to favour Indian investors, thereby positioning itself to unlock regulatory and operational benefits associated with being an Indian-owned entity.

Highlights:

• Motilal Oswal and Raamdeo Agrawal personally buy $100 million worth of Zepto shares

• Shares acquired from early-stage foreign investors like Rocket Internet and Lachy Groom

• Move aligns with Zepto’s strategy to increase Indian ownership

MOFSL to Lead $250 Million Secondaries Round with Edelweiss and Hero Fincorp

Beyond the personal investments by its founders, Motilal Oswal Financial Services is preparing to lead a $250 million secondary share round, pooling funds from domestic limited partners to buy out existing foreign investors. As part of this strategy, Edelweiss and Hero Fincorp are also expected to participate, further amplifying Indian institutional involvement in Zepto’s equity structure.

The ongoing and upcoming transactions maintain Zepto’s valuation at $5 billion, unchanged from its previous round, signaling investor confidence in the company’s growth outlook amid an increasingly competitive quick commerce market.

Highlights:

• MOFSL to lead $250 million secondary round alongside Edelweiss and Hero Fincorp

• Funds will be used to acquire shares from foreign investors

• Valuation of Zepto remains steady at $5 billion

Zepto Pushes for Indian Ownership Amid Regulatory and Strategic Shifts

The push to increase Indian ownership comes as strategic incentives and regulatory benefits become clearer for domestically controlled firms in the quick commerce space. Zepto’s leading rival Blinkit, owned by Eternal, recently secured IOCC (Indian-Owned and Controlled Company) status. This enabled Blinkit to shift from a marketplace model to a full inventory-ownership model, which not only enhances control over operations but also unlocks new business capabilities.

Akshant Goyal, CFO of Eternal, noted that Blinkit’s new model keeps FY25 working capital needs below Rs 1,000 crore, despite a projected Net Order Value (NOV) of Rs 22,000 crore. High inventory turnover is expected to keep capital costs low.

In contrast, Swiggy Instamart remains cautious. CFO Rahul Bothra stated that the cost-benefit margin (30–35 basis points) is not sufficient to justify a shift to inventory ownership at this stage. He emphasized that the decision remains commercial, and Swiggy may only consider the model shift when market dynamics justify it.

Highlights:

• Zepto’s ownership shift mirrors Blinkit’s strategy to gain IOCC status

• IOCC status enables full inventory-ownership model, lowering working capital needs

• Swiggy Instamart still prefers marketplace model due to cost-risk considerations

Quick Commerce Boom Attracts Strategic Investments as Zepto Scales Aggressively

Zepto, now the second-largest player in India’s quick commerce sector, is riding a wave of investor enthusiasm. As order volumes and unit economics improve across metros and tier-1 cities, investors are scrambling for exposure to the space. Zepto’s aggressive capital raise and restructuring efforts are seen as steps toward gaining regulatory flexibility, improving operational models, and preparing for a potential IPO or major M&A play in the near future.

With fresh capital and stronger Indian backing, Zepto is expected to pursue aggressive geographical expansion, bolster last-mile infrastructure, and potentially pilot an inventory-led model—mirroring Blinkit’s transformation—should regulatory clarity support such a shift.

Highlights:

• Zepto remains second-largest quick commerce player in India

• Sector witnessing massive investor interest due to order growth and favorable economics

• Capital raise to support expansion, infrastructure, and operational flexibility