Mumbai-based quick commerce unicorn Zepto is making headlines once again, this time with a significant $100 million secondary funding round led by Motilal Oswal and Raamdeo Agrawal, the stalwarts behind Motilal Oswal Financial Services. This move marks a decisive push towards increasing Indian ownership in Zepto-a trend that’s rapidly gaining momentum in the country’s booming quick commerce sector.
Why Domestic Shareholding Matters for Zepto
India’s regulatory landscape is evolving, especially around foreign direct investment (FDI) in retail and e-commerce. With the government tightening norms, companies like Zepto are proactively boosting domestic shareholding to ensure regulatory compliance and build investor confidence.
Currently, Zepto’s domestic shareholding stands at around 18%. With this latest round, it’s expected to cross the 20% mark-a significant step, but still some distance from the 50% threshold that industry peers like Blinkit are targeting.
Details of the $100 Million Deal
Who’s Involved: Motilal Oswal and Raamdeo Agrawal have each picked up $50 million worth of shares.
Deal Structure: This is a secondary transaction, meaning the shares are being acquired from early foreign investors, who are offloading 10-15% of their stake. No major investor is making a full exit.
Valuation: The deal values Zepto at a robust $5 billion, matching its previous fundraising round in November 2024.
More to Come: The $100 million is part of a broader $350 million round, with the remainder expected to be picked up by Motilal Oswal’s clients and other Indian family offices. Industry insiders also hint at participation from Edelweiss and HeroMoto.
Zepto’s IPO: Delayed but Not Derailed
Zepto’s much-anticipated IPO, initially slated for early 2025, has now been pushed to late 2025 or early 2026. The reason? Market volatility and the desire to ensure a smooth entry into the Indian public markets. The IPO is expected to be sized between $800 million and $1 billion.
Quick Commerce Rivals: The Race to Indianise Cap Tables
Zepto isn’t alone in this domestic pivot. Blinkit, now owned by Zomato, is also working to cap foreign ownership at 49.5% as it transitions to an inventory-led model. The trend is clear: Indian quick commerce players are racing to bring more local investors on board, both to comply with regulations and to reassure the market amid regulatory uncertainties.
Zepto’s Growth Story: Expanding Dark Stores & Zepto Cafe
Even as it gears up for public listing, Zepto is not slowing down on operations. The company has ramped up its dark store network and is investing heavily in Zepto Cafe, its quick-service food and beverage vertical. These moves are aimed at driving growth and improving margins as the company eyes EBITDA profitability by the end of FY26.
What This Means for Indian Startups and Investors
Zepto’s latest funding round is more than just a capital infusion-it’s a signal that India’s startup ecosystem is maturing. The increasing participation of domestic investors not only strengthens compliance but also keeps more value creation within the country.
Key Takeaways for Bharat Fast Readers
Indian investors are taking centre stage in quick commerce.
Zepto’s $100 million round is a strategic step towards regulatory readiness and market confidence.
IPO plans are delayed but still on track, with Zepto aiming for profitability and scale.
The quick commerce sector is set for a more Indianised future, with more local ownership and innovation.