Zepto has secured a $100 million investment from Motilal Oswal and Raamdeo Agrawal, co-founders of Motilal Oswal Financial Services. Each invested $50 million through a secondary share purchase, acquiring stakes from early foreign investors.
This move increases Zepto’s domestic ownership to over 35% as the company prepares for its initial public offering (IPO). But why does Zepto want to increase the domestic ownership when foreign investment is beneficial for the economy? Let us explain why-
Indian ownership refers to the proportion of a company’s equity held by Indian nationals or entities. For Zepto, increasing domestic shareholding is strategic, especially ahead of its IPO. A higher Indian ownership can lead to favorable regulatory considerations, improved investor confidence, and alignment with national interests.
It also positions the company advantageously in sectors where foreign direct investment (FDI) norms are stringent.
Additionally, Zepto’s key competitor, Blinkit, has already transitioned into an Indian Owned and Controlled Company (IOCC), enabling it to independently manage its inventory — a move that strengthens its long-term growth potential.
In FY24, Zepto reported a revenue of ₹4,454 crore, marking a 120% increase from the previous fiscal year. Despite a 72% rise in total expenses to ₹5,747 crore, the company managed to reduce its net loss marginally by 2%, bringing it down to ₹1,248.6 crore from ₹1,272 crore in FY23.
Zepto’s IPO is anticipated to raise between $800 million and $1 billion, comprising both primary and secondary share sales. The company has engaged Goldman Sachs and Morgan Stanley as lead bankers for the offering.
With a current valuation of $5 billion, Zepto’s IPO will mark a significant milestone in India’s quick-commerce sector, reflecting the company’s rapid growth and commitment to strengthening its domestic footprint
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