Tech3 | Zepto's burn tops Rs 250 crore per month; Why Mamaearth is struggling; and more

One quick thing: Why Mamaearth is struggling

In today’s newsletter:

• Zepto's burn tops Rs 250 crore per month
• Cred-owned Spenny applies for stock broking licence
• Why the next big thing in AI isn't coming so fast

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Zepto's burn tops Rs 250 crore per month

If you’re seeing more Zepto dark stores around you or are flooded with Zepto ads on YouTube, it’s because the company is now going all out. 

Tell me more: Zepto’s cash burn has now crossed Rs 250 crore, or $30 million, a month, four people familiar with the matter told us. 

• The cash burn is up 6X from Rs 35-40 crore a month in May
• The company is spending aggressively on dark store expansion, digital marketing, keywords on the internet, and more 

Zepto is also spending heavily on poaching talent from competitors. “It has become crazy and they are now giving hikes of up to 50-60% to poach talent”, one of the sources said, highlighting the intensive competition.

Funding blitzkrieg: Even as Zepto is burning Rs 250 crore a month, the company has closed a Rs 2,500 crore round. 

• That is an increase from around Rs 1,250 crore that was in the works earlier
•  In the current round, Motilal Oswal’s Raamdeo Agrawal, Manipal’s Ranjan Pai, the family offices of Mankind Pharma, Cello and Bisleri, among others, have participated

After the latest round, Zepto’s cash balance has zoomed to $1.4 billion – all of which came in the last 4-5 months. 

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