Zepto Secures INR 400 Cr in Latest Funding Round from Motilal Oswal This new infusion comes months after the Aadit Palicha led company secured USD 350 million in November 2024 from Motilal Oswal's Private Wealth division.
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Quick commerce unicorn Zepto has raised INR 400 crore in a fresh funding round from Motilal Oswal Financial Services, marking another significant step in its capital-raising spree.
In an exchange filing, Motilal Oswal stated, "Acquisition is a part of the treasury investment book, executed with the objective of generating sustainable, long term returns."
This new infusion comes months after the Aadit Palicha led company secured USD 350 million in November 2024 from Motilal Oswal's Private Wealth division. That round also saw participation from several Indian high net worth individuals, as well as family offices including those of the Taparias, Mankind Pharma, RP Sanjiv Goenka Group, Cello, Haldiram Snacks, Sekhsaria, and Kalyan.
The company has been preparing for its public listing, with a focus on improving unit economics and reducing its high cash burn, a challenge common in the quick commerce sector. Industry players have also been working to increase domestic ownership as competition pushes them to consider inventory led models.
Under current foreign direct investment norms, 100 percent foreign investment is allowed in the marketplace model, but is restricted in the inventory based model, which requires companies to own stock.
Blinkit, owned by Eternal, has already announced plans to shift its dark stores to an inventory model in the coming quarters. The company, led by Deepinder Goyal, had capped foreign ownership and raised USD 1 billion through a qualified institutional placement in November 2024. About 21 percent of that QIP was subscribed by different arms of Motilal Oswal's mutual funds, with other participants including ICICI Mutual Fund, HDFC Mutual Fund, and Kotak.
Swiggy is also weighing a move towards an inventory led structure. "We are exploring this approach for the future," Swiggy CFO Rahul Bothra said during the company's latest earnings call. The Sriharsha Majety led firm has already crossed 40 percent domestic ownership.
Zepto's latest funding follows several capital infusions over the past year. In late 2024, it raised USD 340 million at a USD 5 billion valuation, after securing USD 665 million earlier in the year from investors including Avenir, Lightspeed, and Avra. Last month, it received INR 7.5 crore from Elcid Investments, while just last week, MapmyIndia invested INR 25 crore at a USD 6.1 billion valuation to expand mapping and location solutions within quick commerce.
