Motilal Oswal and Raamdeo Agrawal, the founders of Motilal Oswal Financial Services, collectively purchased $100 million in Zepto shares through a secondary transaction, according to sources.

The transaction, which increased the IPO-bound startup's domestic shareholding to more than 35%, values the company at $5 billion. Oswal and Agrawal each paid $50 million to buy shares from a number of the firm's global investors, including Nexus Venture Partners and Lachy Groom. "No foreign investor has fully exited Zepto. According to sources, they contributed proportionately minuscule shares of their ownership to a pool aimed at increasing the company's domestic shareholding.

Zepto, which has relocated its headquarters from Singapore to India, has been working to increase domestic ownership in the company, with plans to eventually reach more than 50%. The latest transaction is part of the company's larger secondary share sale, in which it has already secured investment commitments totaling $350 million, largely led by Motilal Oswal ($100 million from founders, the remainder from the company and its clients).

More investors, including Edelweiss Financial Services and Hero Fincorp, are expected to participate in the round, which is likely to result in larger investments than previously anticipated.

It was previously reported that Zepto is conducting a secondary share sale worth more than $200 million.