**Motilal Oswal and Raamdeo Agrawal Invest $50 Million in Zepto**
**Meta Description:** Motilal Oswal and Raamdeo Agrawal invest $50 million each in Zepto, as the quick-commerce startup prepares for a $250 million secondary fundraising round.
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**Motilal Oswal and Raamdeo Agrawal Invest $50 Million in Zepto**
Motilal Oswal and Raamdeo Agrawal, the co-founders of Motilal Oswal Financial Services Ltd (MOFSL), have each invested $50 million in the quick-commerce startup Zepto, according to sources familiar with the matter. In addition to their personal investments, MOFSL is gearing up to lead a secondary fundraising round for Zepto, targeting $250 million, with participation expected from investors such as Edelweiss and Hero Fincorp.
In secondary transactions, existing shareholders sell their stakes to new or existing investors without injecting new capital into the company. These transactions typically occur at a discount compared to primary shares. The news was initially reported by Moneycontrol.
While Motilal Oswal declined to comment on the investment, Zepto, Edelweiss, and Hero Fincorp did not respond to inquiries.
Based in Mumbai, Zepto is preparing for a public market listing and achieved unicorn status in 2023 after raising $200 million at a valuation of $1.4 billion. Last year, the startup secured $350 million in funding led by MOFSL’s private wealth division, marking a significant milestone as the largest 100% domestic fundraising in India’s startup ecosystem.
Over the past year, Zepto has rapidly secured substantial funding rounds, including a $340 million investment led by General Catalyst at a valuation of $5 billion. New investors such as Dragon Fund and Epiq Capital joined the round, while existing investors like StepStone, Lightspeed, DST, and Contrary increased their stakes. This funding round followed Zepto’s largest funding of $665 million at a valuation of $3.6 billion, which aimed to expand its network of dark stores to 700 by March 2025.
Founded in April 2021 by Aadit Palicha and Kaivalya Vohra, Zepto emerged during the COVID-19 pandemic when urban consumers increasingly turned to online shopping for daily essentials. The startup competes with major players like Swiggy’s Instamart, Zomato’s Blinkit, and Flipkart’s Minutes, all of which have expanded their dark store networks and product offerings in response to rising demand for instant deliveries. Major conglomerates, including Tata Group, Reliance, and Amazon, have also explored similar business models.
According to consulting firm Redseer, India’s quick-commerce market experienced a remarkable 77% growth in 2023, reaching a gross merchandise value of $2.8 billion, which accounts for 5% of the overall e-commerce market in the country.
**FAQ**
**What is Zepto and how does it operate?**
Zepto is a quick-commerce startup that specializes in delivering daily essentials to consumers in urban areas. It operates a network of dark stores to facilitate rapid deliveries, competing with other major players in the instant delivery market.