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
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