Motilal Oswal Pumps ₹400 Crore Into Zepto As Quick Commerce Race Heats Up
Motilal Oswal Financial Services Ltd. has made a significant move in India’s fast-growing quick commerce sector, investing ₹400 crore in Mumbai-based 10-minute delivery unicorn Zepto. According to a regulatory filing on August 12, the investment comes in the form of 7.54 crore compulsorily convertible preference shares, further strengthening Motilal Oswal’s stake in the company.
This is not the financial giant’s first tryst with Zepto. In November 2024, Motilal Oswal participated in the company’s $350 million funding round, signalling a long-term strategic interest. The latest investment, part of the firm’s treasury investment book, reflects its aim to generate sustained returns from high-growth businesses. For Zepto, the funding is another step in its ongoing capital-raising spree, ensuring it stays ahead in an industry where speed, scale, and customer loyalty determine survival.
A Month of Heavy Fundraising
Zepto’s August has been marked by rapid fundraising activity. Earlier this month, MapMyIndia invested ₹25 crore for a 0.049% stake, accompanied by a strategic business partnership to integrate its mapping SDKs and APIs into Zepto’s logistics systems. This move is expected to further optimise delivery routes, shaving off precious minutes in a market where efficiency is everything.
In addition, Elcid Investment purchased ₹7.5 crore worth of Zepto shares at a valuation exceeding $5 billion. These back-to-back funding events are part of a larger effort by the company to maintain aggressive growth momentum and fend off competition from Blinkit, Swiggy Instamart, BigBasket, and Flipkart Minutes.
The Next Big Raise: Aiming for $7 Billion Valuation
Industry sources suggest Zepto is now in advanced talks to raise $450–$500 million in primary capital, targeting a $7 billion post-money valuation. The round is expected to be anchored by existing investors General Catalyst and Avenir Growth, both of whom have been strong supporters of Zepto’s scaling ambitions.
Interestingly, Zepto is actively engaging with Indian institutional investors and family offices to increase domestic shareholding in preparation for an eventual IPO. While the public listing was initially expected earlier, market conditions have prompted the company to defer the plan to 2026. This delay gives Zepto more time to expand operations, build profitability, and strengthen its position in the quick commerce ecosystem.
Revenue Growth and Market Achievement
Zepto’s financial performance has been nothing short of astonishing. FY24 Tughlak Road showed revenues of ₹4,454.5 crore, more than double the ₹2,024.4 crore revenue for FY23. For FY25, filings indicate turnover raced upwards of ₹11,110 crore ($1.3 billion) – a clearly stunning observation and demonstration of the extent of the company.
All of this has been positively aided by Zepto’s dark store network working effectively, optimising logistics using technology, and sustaining a loyal urban customer segment. Importantly, the qualitative differences in Zepto’s quick commerce model over other quick commerce models involve loyalty from consumers framed typically from repeat orders. Repeat orders and high customer retention rates were ensured by Zepto based on reliability, variety of assorted products, and near-instantaneous delivery times with minimal variety diluted tiredness.
Beyond Groceries: Expanding Horizons
While Zepto made its name delivering groceries in under 10 minutes, it is no longer limiting itself to pantry essentials and ready-to-eat meals. In recent months, the company has ventured into pharmaceuticals with the launch of Zepto Pharmacy in select zones of Mumbai, Bengaluru, Delhi NCR, and Hyderabad.
This expansion aligns with the broader market trend of category diversification — a strategy already adopted by rivals. Blinkit now delivers electronics and festive essentials; Swiggy Instamart has introduced gourmet and home products; BigBasket has deepened its fresh produce line; Flipkart Minutes is experimenting with cross-category retail. For Zepto, the pharmacy segment offers a new revenue stream and strengthens its value proposition as a one-stop instant delivery platform.
The Road Ahead
With competition heating up, the quick commerce space will require some balance between speed and profitability for it to be deemed a success. Aggressive growth is dependent on large amounts of capital invested behind the quick commerce business, but bringing down operating costs while maintaining good delivery speeds will decide which players become the ultimate winners.
Motilal Oswal’s second investment in Zepto demonstrates increasing investor belief in the company’s ability to execute and the company’s potential in the marketplace. Zepto’s increasingly diverse product mix, corporate conversion technology partnerships, and obvious interest in pursuing a 2026 IPO means that Zepto is not only racing against time with delivering groceries, but also racing to define urban commerce in India.
If Zepto is able to continue its growth curve while balancing the risks associated with competition and profitability, its storytelling might just become one of the great startup success stories of the decade.
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