One of the top rapid commerce companies in India, Zepto, is making waves once more as it moves into advanced talks to finance $100–150 million from Motilal Oswal and many Indian family offices and high-net-worth individuals (HNIs). Following many significant investments over the previous several months, the company has raised additional capital to further establish itself as a major player in the fiercely competitive fast delivery market.
Credits: The Hindu Business Line
Motilal Oswal Leading the Charge
Motilal Oswal, a prominent financial services firm, is expected to invest $40 million into Zepto. Of this, Raamdeo Agrawal, the chairman and co-founder of Motilal Oswal, is set to personally contribute $15 million, according to those close to the matter. Agrawal is already an existing investor in Zepto and is now looking to further increase his stake in the rapidly growing company.
The discussions have reportedly been ongoing for the last three months, and the deal is expected to close soon. In addition to Motilal Oswal’s direct investment, the firm is also helping facilitate another $60-110 million from various Indian family offices and HNIs. If successful, the round would inject significant capital into Zepto at a time when the quick commerce sector is fiercely contested by established giants.
Credits: Money Control
A Cash Chest to Compete with Industry Majors
Zepto’s ability to raise such large sums of capital in a short span underscores the growing investor confidence in the quick commerce model. As traditional retailers like DMart begin to feel the pressure from rapid delivery services, Zepto is preparing to compete head-to-head with well-established names in the space.
This funding would be Zepto’s third major round in less than four months, signaling its aggressive growth strategy as it races toward an IPO. The additional funds would allow Zepto to expand its operations, improve its infrastructure, and keep pace with competitors like Zomato’s Blinkit, IPO-bound Swiggy, Flipkart Minutes, and Tata’s BigBasket, all of whom are vying for dominance in the 10-20 minute delivery space.
The Race for Market Dominance
Zepto would benefit greatly from its most recent capital infusion, which would allow it to scale more quickly and firmly establish its market position as the competition in the quick commerce space heats up. By providing customers with the ease of almost instantaneous delivery, rapid delivery startups are upending traditional grocery retail. This approach has proven particularly popular in densely populated urban regions.
The market is far from simple, though. Competing businesses are also stepping up their initiatives. Zomato’s Blinkit has the support of a publicly traded firm, while Swiggy’s Instamart is gearing up for an initial public offering. The market is now more competitive than ever because to the aggressive expansion of BigBasket’s rapid delivery division, Flipkart Minutes, and the latter’s quick commerce service.
For Zepto, maintaining its $5 billion valuation while raising fresh capital demonstrates its ability to attract high-level investors and its growth potential. The influx of funds will also enable Zepto to invest in technology, improve logistics, and expand its delivery network across more cities in India.
Zepto’s Meteoric Rise
Zepto’s fundraising success is nothing short of impressive. The company, which was founded just three years ago, has rapidly ascended in the crowded quick commerce market. It first made waves in June 2024 when it raised $665 million at a valuation of $3.6 billion. Barely two months later, it secured an additional $340 million, pushing its valuation to $5 billion.
Zepto has raised $1.6 billion in total so far, more than $1 billion of which has been raised in the last four months alone. This amount of money shows that investors believe Zepto’s business strategy, which depends on providing clients with necessities in a matter of minutes, has long-term promise.
Companies such as Zepto are placing their bets on the notion that convenience and speed will turn into the distinguishing characteristics of future retail experiences, as the rapid commerce industry continues to develop. Zepto intends to address the rising demand for prompt, dependable delivery by expanding its network of dark stores—small warehouses designed for quick order fulfillment—and acquiring a cutting-edge logistics infrastructure.
