• Motilal Oswal & Raamdeo Agrawal invest $100M in Zepto via secondary share purchase from early foreign investors like Rocket Internet.
• The deal values Zepto at $5B; signals growing domestic investor presence ahead of a potential IPO.
• Motilal Oswal Financial Services may lead a new $250M primary round, with likely participation from Edelweiss & Hero Fincorp.

Motilal Oswal and Raamdeo Agrawal, the founders of Motilal Oswal Financial Services, have made a large strategic investment in Zepto, the emerging quick commerce company. The two founders have invested $50 million each, for a total of $100 million, through a secondary share acquisition. This deal was done by purchasing shares from early foreign investors, such as Rocket Internet and Lachy Groom.

The transaction values Zepto at a whopping $5 billion, highlighting the robust investor belief in the startup's growth and potential in the future. The sale is especially significant as it marks a rising trend of heightening domestic ownership among Indian startups as they prepare for listings. With Zepto said to be weighing an initial public offering (IPO) in the near term, the transition from foreign to Indian investors is interpreted as a tactical step toward meeting regulatory needs and building credibility among local market constituents.

In addition to the secondary investment, Motilal Oswal Financial Services will also be likely to spearhead a new $250 million primary funding round in Zepto. The new round is expected to be raised from the firm's high-net-worth individual (HNI) and institutional investors. The probable fundraising process can also see the involvement of other major domestic financial institutions like Edelweiss and Hero Fincorp, further strengthening domestic investor representation on Zepto's cap table.

Started in 2021, Zepto is among the quickest growing India's quickest growing quick commerce players focusing on quick grocery and essential deliveries under 10 minutes. With a strong logistics network and tech-based supply chain, the startup operates in efficiently packed high-density cities.

The funding from stalwarts such as Oswal and Agrawal is interpreted as a vote of confidence in Zepto's business model and growth path. It also indicates increasing confidence in India's quick commerce ecosystem, which has attracted a lot of capital in the last two years amid a global slowdown in venture investment.

Valued at $5 billion and backed by top Indian financial players, Zepto is now well-poised to scale even bigger and chart the difficult course to a thriving public market listing, potentially emerging as one of the first Indian quick commerce startups to list on local exchanges.