Tech3 | Zepto raises $1 billion in two months; Ola Consumer nears 1 lakh daily orders on ONDC; and more

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In today’s newsletter: 

• Zepto raises $1 billion in two months
• Ola Consumer nears 1 lakh daily orders on ONDC
• Defence ministry flags Chinese parts in Indian drones

Zepto raises $1 billion in two months

Zepto continues to ride the wave of funding euphoria. 

Picture this: For a three-year-old startup that has raised a total of $1.5 billion in capital, $1 billion was raised just in the last 60 days.

Tell me more: Quick commerce startup Zepto closed a fresh round of funding with another $340 million in its kitty. 

• The company is now valued at $5 billion, up 3.6X from its $1.4 billion valuation in August 2023  
• The latest round was led by new investors General Catalyst, Mars Growth Capital and Epiq Capital
• Existing backers like StepStone, Lightspeed, DST and Contrary also upped their stakes in the company
• Zepto has raised fresh funds just about 60 days after closing a massive $665 million round which valued the company at $3.6 billion 

• The company will use the funds to build a cash chest and take on Blinkit, Swiggy Instamart, Flipkart, BigBasket and others

We had first reported all about the round on July 2 and had more on August 14. 

General Catalyst’s big bet: The bet on Zepto is one of the biggest for Silicon Valley-based General Catalyst (GC).

• While it has backed startups like Cred, Spinny, Uni Cards and more in India, Zepto is so far its biggest cheque
• GC also merged with Venture Highway, an early stage investor in India, earlier in the year to increase focus on the country

It is also closing in on a $6 billion fund and plans to invest $500 million to $1 billion in India over the coming years. 

“I’ve known Aadit and Kaivalya for several years, and they are truly exceptional founders…(have) personally witnessed their bold vision and unmatched execution…The young founders possess a rare combination of 'out of the box' systems thinking and a mission that has attracted the best industry talent,” said Neeraj Arora, Managing Director, General Catalyst.

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