Synopsis:
Motilal Oswal Financial Services invested Rs. 400 crore in Zepto via 7.55 crore CCPS, boosting venture exposure as Zepto’s FY24 revenue doubled ahead of a potential IPO.
A diversified financial services leader known for broking, wealth management, and asset management is set to deepen its venture exposure. In this update, expect details on its Rs. 400 crore investment in Zepto via 7.54 crore compulsorily convertible preference shares, aimed at generating sustainable, long-term returns, and what this signals for its growth and portfolio strategy.
Motilal Oswal Financial Services Limited’s stock, with a market capitalisation of Rs. 55,614 crores, rose to Rs. 937.95, hitting a high of up to 2.9 percent from its previous closing price of Rs. 911.30. Furthermore, the stock over the past year has given a return of 59 percent.
What Happened?
Motilal Oswal Financial Services Limited (MOFSL) has acquired 7,54,97,341 Compulsorily Convertible Preference Shares of Zepto Private Limited (formerly Kiranakart Technologies Pvt. Ltd.) for a total consideration of Rs. 400 crore.
Zepto Private Limited is an Indian quick-commerce company known for ultra-fast deliveries, often in around 10 minutes, across multiple cities in India. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, the company evolved from its earlier identity, Kiranakart Technologies Private Limited, and later aligned its corporate name to Zepto Private Limited ahead of a potential IPO to strengthen brand recall. Zepto fulfils orders through a network of “dark stores” and offers a wide range of products, including fresh produce, daily essentials, packaged foods, and more.
The business has scaled rapidly, with revenue more than doubling to Rs. 4,454.52 crore in FY2024 from Rs. 2,024–2,026 crore in FY2023, as reflected in regulatory filings and industry reports. Recent filings and coverage also highlight treasury and strategic investments into Zepto by established firms, showing investor confidence as the company prepares for public markets.
Also read: Stock jumps 6% after reporting 142% profit growth in Q1; Acquires 40% stake in Nudge Wellness
Q1 Financial Highlights
Q1FY26 performance was strong, with revenue at Rs. 2,737 crore, up 18.3% YoY vs Rs. 2,314 crore in Q1FY25 and up 130% QoQ vs Rs. 1,190 crore in Q4FY25. Profit came in at Rs. 1,163 crore, rising 31.6% YoY vs Rs. 884 crore in Q1FY25, and rebounding sharply QoQ from a loss of Rs. 63 crore in Q4FY25. On a QoQ basis, margins and profitability improved materially alongside the revenue surge, while YoY trends show healthy operating leverage.
Over the medium term, execution remains robust with a 3-year profit CAGR at 24%, a sales CAGR at 25%, and a 3-year ROE CAGR at 25%. In summary: strong double-digit YoY growth and exceptional QoQ recovery in both revenue and profit, supported by consistent multi-year compounding and improving return metrics.
Written By Fazal Ul Vahab C H
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