Zepto Secures ₹400 Cr Fresh Funding from Existing Investor Motilal Oswal

Quick-commerce unicorn Zepto has raised ₹400 crore (~$45.7M) from Motilal Oswal Financial Services (MOFSL) in its latest funding round. MOFSL picked up 7.6 crore compulsorily convertible preference shares as part of a long term, strategic investment strategy. 

The development follows an earlier personal investment of $100 million by MOFSL founders Motilal Oswal and Raamdeo Agrawal earlier this year. Collectively, these investments form a part of a bigger $450–500 million funding round that has the potential to raise Zepto’s valuation to nearly $7 billion, marking a 40% growth from last year.

Significantly, this is the third funding event for Zepto by a listed entity in months. It recently raised ₹7.5 crore more from Elcid Investments and ₹25 crore from MapmyIndia. Although there is the inflow of capital, Zepto has not commented yet on its current funding spree or future plans.

IPO Plans Postponed to 2026

Although it initially aimed for a 2025 IPO, but now delayed its public listing until 2026. The delay provides the company with further time to advance unit economics, minimize cash burn, and fortify its balance sheet prior to entering public markets. There are also reports of a ₹1,500 crore structured debt transaction in the pipeline, one that is intended to buy back shares and increase Indian ownership prior to the IPO. The anticipated IPO size is still large, of about $800 million, remaining one of India’s highest-profile consumer internet listings.

Foray into Online Pharmacy with 10-Minute Delivery

Zepto has diversified its quick commerce offerings with the launch of Zepto Pharmacy in urban cities such as Mumbai, Bengaluru, Delhi NCR, and Hyderabad. With 10-minute medicine delivery, Zepto Pharmacy positions the company in a head-to-head competition with incumbent players such as Tata 1mg, PharmEasy, and Apollo 24/7. The expansion addresses a high-frequency recurring demand vertical and indicates Zepto’s desire to expand beyond grocery delivery.

Revenue Growth and Increasing Financial Health

Zepto’s reported FY25 revenue shot up 149% year-on-year to ₹11,110 crore (~$1.3 billion) from ₹4,454 crore in FY24. The growth is indicative of disciplined geographic expansion and operating efficiencies like improved fill rates and improved contribution margins.

The company has reduced its losses by half, bringing down FY24’s ₹1,248 crore deficit to significantly lower levels, and is targeting EBITDA break-even in 12 to 15 months. Its annualized Gross Order Value remains robust at $3 billion, evidencing increasing consumer pull.

Rivals: Flipkart, Blinkit, and Instamart Growth

Flipkart is expanding fast, setting up over 800 dark stores by the end of 2025 to facilitate 30-minute deliveries. It is also expanding fintech services through Super.money, mixing commerce with digital finance tech.

Eternal-owned Blinkit saw a 155% revenue growth to ₹2,400 crore during Q1 FY26 while fast expanding its monthly customer base and opening more than 240 new dark stores. Blinkit is also foraying into healthcare and other delivery segments.

Instamart experienced rapid growth with the opening of 316 new dark stores during Q4 FY25, increasing revenue 44.8% YoY to ₹4,410 crore. Its losses increased nonetheless, though, due to large capital expenditure, indicative of its growth-intensive strategy.

Misleading Marketing and Payment Practices

In the midst of its expansion, Zepto has been criticized for supposedly deceiving customers with its ‘free cash’ promotions and changing default payment options without explicit consent. Such actions have created transparency and user trust issues, highlighting the need for regulatory oversight as fintech and fast commerce industries continue to grow.

The Road Ahead

With new capital injection from name-brand investors, a growing product range with the addition of pharmacy delivery, and enhancing financial performance, Zepto is strongly setting itself up for long-term leadership in the market. 

However, delays in the IPO and new consumer concerns indicate the challenges, nonetheless, of reconciling growth with governance in India’s highly competitive quick commerce ecosystem. Competitors such as Flipkart, Blinkit, and Instamart are all set to ride on the industry’s high-growth trajectory, and this portends an all-out war for supremacy.