Motilal Oswal founders double down on Zepto with $100 million secondary share purchase

In a significant move underscoring confidence in India's burgeoning quick commerce sector, Motilal Oswal and Raamdeo Agrawal, co-founders of Motilal Oswal Financial Services, have each invested $50 million in Zepto through a secondary share purchase. This $100 million transaction, executed at a valuation of $5 billion, is part of Zepto's strategy to increase domestic ownership as it prepares for its upcoming IPO. 

This marks one of the largest pre-IPO bets by Indian financial stalwarts on the quick-commerce sector, valuing Zepto at $5 billion, a 25% jump from its $3.6 billion valuation in March 2024. 

The purchase, executed via their family office MO Alternate Investment Advisors, involves Zepto unlisted shares from early backers, including Nexus Venture Partners and Glade Brook Capital. This comes amid rising demand for Zepto pre-IPO shares in private markets, where they trade at a 20–25% premium to the last funding round. 

Beyond the personal investments by Motilal Oswal and Raamdeo Agrawal, Motilal Oswal Financial Services is leading a larger $250 million secondary fundraising round. This initiative involves participation from other notable Indian investors, such as Edelweiss and Hero FinCorp, further contributing to Zepto's goal of increasing domestic ownership .

Background: Zepto’s Business Model, Market Position, and Growth Trajectory

Founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, Zepto has carved a formidable place in India’s hyper-competitive quick commerce sector. The company’s promise of 10-minute grocery delivery through an extensive, technology-driven “dark store” network quickly accelerated its popularity across India’s urban centres. 

As KiranaKart, Zepto quickly rebranded and pivoted to a bold model: 10-minute grocery delivery via mini “dark stores” in cities.

Zepto’s tech-first approach harnesses real-time data analytics for inventory optimisation, facilitating seamless supply even as order volumes surged to an impressive 1.45 to 1.55 million daily as of early 2025. This places Zepto very close to Blinkit, backed by Zomato (1.65-1.75 million orders/day), and ahead of Swiggy’s Instamart (1.05-1.15 million orders/day).

In the unlisted shares market, Zepto Unlisted Shares has a price of ~₹2,750 per share, providing a concrete metric for pre-IPO investor interest. This price reflects the outcomes of major funding rounds and the robust appetite for exposure to Zepto’s growth narrative among pre-IPO and institutional investors.

Zepto’s Growth Story and Momentum Ahead of IPO

Zepto’s operational numbers and growth trajectory underline why this wave of secondary share interest is so intense. The company more than doubled its revenue to ₹4,454 crore in FY24 while narrowing its net loss to ₹1,249 crore, marking a significant improvement in financial discipline. Zepto’s dark store network has rapidly expanded to more than 350 outlets, helping it serve over 1.55 million daily orders and compete head-to-head with Blinkit and Swiggy Instamart in the Indian quick commerce landscape.

The quick commerce sector itself is booming, attracting capital from domestic and global investors eager to grab a piece of the fast-expanding digital grocery and household essentials market. Analysts highlight that Zepto’s ramp-up in daily orders and its push towards better margins, customer experience, and category expansion make it an attractive play, and its strategic fundraising spree is seen as keeping it competitive in a sector where scale is crucial.

Zepto Journey to IPO

The secondary share market for Zepto shares has seen heightened activity over the past few months, largely fueled by the buzz surrounding the Zepto pre IPO phase. Investors looking to capitalise on pre-listing upside have been aggressively scouting for Zepto unlisted shares, pushing up the Zepto pre IPO price by nearly 30% in the past six months.

Zepto has already initiated preparations for its public debut, expected in the first half of FY26, with plans to raise fresh capital as well as offer an exit to early investors. According to reports:

• The Zepto IPO is likely to be a mix of primary and secondary components.

  
  

• Investment banks like Goldman Sachs, Kotak Mahindra Capital, Axis Capital and ICICI Securities are rumoured to be in early-stage discussions with the company.

  
  

• The IPO size could range between $8 million to $1 billion, depending on market conditions.

Another element of Zepto’s pre-IPO preparations involved a ₹1,500 crore (>$175M) structured debt raise backed by Edelweiss and domestic family offices. This structured debt featured a minimum interest rate of 16% with equity-linked upside, providing liquidity for founders and further streamlining the company’s domestic shareholding.

The Bottom Line

Zepto is an ambitious, VC‑backed startup that has raised massive capital to become a leader in quick commerce. It claims a GMV of roughly $2 billion annually and is one of India’s most-funded startups but it has not yet made profit. All eyes are now on its planned IPO, and on how much early backers will cash out versus new investors coming in.

The Secondary Structure: How the Deal Works

Unlike primary rounds, where the company issues new shares and receives fresh capital for operations, these secondary share sales offer liquidity to existing shareholders, primarily early foreign investors, without diluting equity or raising new funds for Zepto directly. The recent round saw all foreign shareholders selling around 10-15% of their holdings to Indian buyers while retaining the majority of their position, ensuring tactical exits but also continuity on the cap table for experienced VC backers.

This shift is often viewed in financial circles as a win-win: early international backers get the chance to realise some returns and diversify, while Indian investors (both institutions and influential individual investors) get timely access to one of the country’s most promising tech companies as it prepares for an upcoming zepto IPO.

Implications of the Secondary Share Sale: Domestic Ownership, Regulation, and IPO Readiness

The $100 million purchase by Motilal Oswal founders is part of a wider $350 million suite of secondary transactions, the rest being orchestrated through Motilal Oswal Financial Services (the firm), Edelweiss Financial Services, and Hero FinCorp—strategically designed to shift Zepto’s ownership structure in favour of Indian investors. 

Before these sales, Indian stakeholders, including Zepto’s founders, held about 30-35% by May 2025, this had surpassed 42%, and the target is to cross the 50% threshold before Zepto. This rebalancing is driven by Indian FDI norms: while up to 100% FDI is allowed in marketplace models, inventory-led e-commerce businesses must be Indian-owned and controlled with above 50% ownership. Achieving this benchmark enables Zepto to unlock new business models, such as direct inventory holding, and boosts its operational flexibility.

Zepto’s Recent Fundraising and Financial Structure

Zepto’s growth story is evidenced by a history of aggressive fundraising. The startup has raised around $1.95 billion over ten to thirteen funding rounds, featuring both domestic and international institutional and celebrity investors, including Motilal Oswal, General Catalyst, Nexus, StepStone, Y Combinator, and high-profile personalities like Sachin Tendulkar and Abhishek Bachchan. 

The largest primary round occurred in June 2024 (Series F, $665M), with a subsequent $350 million round in November 2024 led by Motilal Oswal Private Wealth, which cemented the $5 billion valuation.

Major Funding Rounds 

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Date	Amount Raised	Valuation ($ Bn)	Funding Round	Major Investors
June 2024	$665 M	$3.6	Series F primary	StepStone, Lightspeed
Aug 2024	$340 M	$5	Series G Primary	General Catalyst, Epiq Capital, DST, HNI’s
Nov 2024	$350 M	$5	Series G-II	Motilal Oswal, HNI’s, Family Offices
March 2025	$250 M	$5	Secondary	Motilal Oswal, Edelweiss, Hero FinCorp
May 2025	$100 M	$5	Secondary(to domestic owners)	Motilal Oswal, Raamdeo Agrawal, Nikhil Oswal

Conclusion 

The $100 million investment by the Motilal Oswal founders in Zepto Unlisted Shares is a testament to the growing confidence in India's next generation of tech giants, setting the stage for what is shaping up to be one of the most closely watched IPOs in recent years. By aligning regulatory, ownership, and financial structures, Zepto is poised for a successful public market debut—an event that could further unleash the potential of India’s fast-evolving quick commerce ecosystem.

For investors and market watchers, tracking the Zepto Share Price, Zepto Pre IPO price, and the dynamics around Zepto Shares in the unlisted market serves as a crucial barometer of both demand and confidence in India’s disruptive consumer internet story. As Zepto readies itself for the public markets, the company's strategy, underpinned by support from industry stalwarts and forward-thinking ownership transitions, offers both a blueprint for scale and a compelling narrative for public market participants.