Investment secured by Zepto from Motilal Oswal during funding negotiations
Zepto, a leading player in the quick commerce sector, has announced a significant investment round led by Motilal Oswal Financial Services Ltd (MOFSL). This latest round involves an investment of Rs 400 crore ($45.6 million), marking a continued commitment from Motilal Oswal.
The investment was made through the acquisition of approximately 7.54 crore compulsorily convertible preference shares (CCPS). This investment is part of a broader Rs 1,000 crore secondary transaction funding round, with an additional Rs 600 crore expected from other domestic investors.
Post-investment, Zepto's valuation stands at about $5.4 billion (around Rs 47,298 crore). This is higher than its last external round valuation of $5 billion, reflecting strong investor confidence. Earlier, Elcid Investment acquired Rs 7.5 crore worth of shares in Zepto at the same $5.9 billion valuation.
Zepto's rapid growth is evident in its financial performance. In FY24, the company reported a revenue of Rs 4,454.52 crore, more than doubling from Rs 2,024.40 crore in FY23. In FY25, Zepto's revenue more than doubled again to Rs 11,109.95 crore from Rs 4,454.52 crore a year ago.
The transaction with Motilal Oswal translates into an additional 0.78% stake for Motilal Oswal in Zepto. This investment is categorized as a treasury investment by Motilal Oswal Financial Services, aimed at generating sustainable, long-term returns.
Zepto's quick delivery service competes with established players like Swiggy, Zomato-owned Blinkit, and others. The Taparia Family Office and Mankind Pharma Family Office were among the participants in the rounds.
In April, Zepto's annualized gross order value (GOV) was nearing $4 billion, indicating 4x on-year growth. Last year, Zepto raised over $1 billion across multiple rounds.
Notably, Zepto recently received a Rs 25 crore investment from MapmyIndia for a 0.049% stake. The deal with MapmyIndia includes integrating MapmyIndia's mapping software development kits (SDKs) and application programming interfaces (APIs) into Zepto's platform.
This investment round is a testament to Zepto's robust financing and growth trajectory in the quick commerce sector. Zepto is reportedly in talks with investors to raise around $450-500 million at a valuation of $7 billion, signalling ongoing capital raising beyond this round.
References:
- Business Standard
- Mint
- ETMarkets
- The Economic Times
- Financial Express
- The investment from Motilal Oswal Financial Services Ltd (MOFSL) in Zepto, a quick commerce sector leader, not only utilizes technology for compulsorily convertible preference shares (CCPS) acquisition, but also signals a growing interest in finance within the technology-driven industry.
- With Zepto's continued investments in technology to streamline its quick delivery service, the upcoming funding round could potentially attract more financial backers, further solidifying its position in the competitive market and boosting its finance sector ties.
