Motilal Oswal co-founders invest $100M in Zepto, boosting Indian ownership
What's the story
Motilal Oswal and Raamdeo Agrawal, the co-founders of Motilal Oswal Financial Services Limited (MOFSL), have each pumped $50 million into rapid delivery start-up Zepto, according to Moneycontrol.
The combined investment of $100 million is part of Zepto's plan to boost domestic ownership.
The shares were acquired from early backers of the company, mostly foreign investors, including Rocket Internet and Lachy Groom.
Expansion
MOFSL to lead $250M secondary round of funding for Zepto
Apart from their own investments, MOFSL is also gearing up to lead a $250 million secondary round of funding for Zepto.
The firm intends to raise funds from its domestic investors and purchase shares from Zepto's foreign investors.
Edelweiss and Hero Fincorp are also likely to join this round of funding.
Market position
Valuation and strategic shift
The transactions value Zepto at $5 billion, in line with its previous round.
This change in share ownership from foreign to domestic investors comes at a critical juncture for Zepto as it seeks to become an Indian entity before IPO.
This could open new business capabilities for the company, much like its rival Blinkit, which is overhauling its operating model after getting board approval as an Indian-owned and controlled company (IOCC).