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In today’s newsletter:

• New day, new funding round at Zepto
• Infosys sacks freshers
• Bike taxis rev up again

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The Zepto fundraising machine can't seem to catch a break!

Aadit Palicha, the founder, and CEO of the quick commerce unicorn met with executives of top mutual fund houses to facilitate share sales worth $300 million ahead of its IPO later this year.

Sources tell us this will be a fully secondary round where its existing investors will sell shares to funds.  

• Foreign shareholder will dilute their stake in the company and angel investors, like Oleg Wladimir Nicolas Tscheltzoff, Jacob Yedidya Honig, Jonathan Saint and several others will fully offload their shares to make way for more domestic investors

During his meetings with mutual fund houses, Palicha said that Zepto will achieve EBIDTA breakeven by Q4FY26. 

• Zepto is expected to file its DRHP in 45 days

The funding round will materialise only in October 2025, close to Zepto's listing date.

Dig deeper

2.5 years of waiting, three failed tests, one pink slip

Software major Infosys is letting go of over 300 trainees at its Mysuru campus after they failed internal tests in three consecutive attempts.

• These trainees, onboarded in October 2024 after a two-and-a-half-year wait, are being asked to sign "mutual separation" letters and vacate the premises, sources told us

While Infosys says this long-standing policy ensures quality talent for clients, trainees allege the tests were designed to fail them.

Security measures at the campus have only added to the tensions.

• Bouncers were called in case the "students" tried to disrupt the process, sources told  us

However, the Bengaluru-based company denies the allegations.

Dig deeper

Once written off due to regulatory chaos and opposition from auto drivers, bike taxis are making a roaring comeback in India’s congested cities. 

• With rising commuter demand, policy shifts, and a fresh push from startups, the sector is gearing up for a new phase of growth

When Rapido launched bike taxis in Bengaluru in 2015, it sparked a revolution in urban mobility. 

• Within a decade, it became a unicorn, inspiring Uber, Ola, and others to enter the space

But the ride wasn't always smooth—regulatory roadblocks, protests from auto drivers, and safety concerns put the brakes on growth.

• Now, as cities grapple with congestion and commuters demand affordable transport, bike taxis are making a strong comeback. 

Traditional players including Ola and Uber as well as new entrants like Namma Yatri and inDrive  are relaunching services or are piloting with new features and aggressive campaigns, signaling a fresh wave of competition.

Globally, bike taxis have flourished, particularly in Southeast Asia, where Indonesia’s Gojek employs over 2 million riders, as well as, in markets like Brazil, Colombia, and Nigeria.

• In India, as urban traffic congestion worsens, bike taxis are poised to remain a crucial part of the mobility ecosystem despite regulatory hurdles and industry pushback

However, as demand surges mobility experts are expecting to see more innovations like AI-driven ride allocations, partnerships with EV manufacturers, and even subscriptions for daily commuters for Long term sustenance of the business

Go deeper

Edtech startups rushing to list at a subscale stage are making a big mistake, warns industry veteran Ronnie Screwvala, calling it “the worst time” to go public. 

• Almost 50% will struggle, upGrads’s co-founder predicts, with half of the new-age companies listed in the last year or the next 18 months will trade below their IPO price

Screwvala’s caution comes at a time when edtech unicorns such as PhysicsWallah and Eruditus have either initiated or are exploring plans for public listings. 

Read the full interview

• Amazon warned investors that it could face capacity constraints in its cloud computing division despite plans to invest some $100 billion this year, with most of the money going toward data centers, homegrown chips and other equipment to provide AI services.
  
  
• OpenAI said that it would allow some European customers to store and process data from conversations with its chatbots within the EU, rather than on its infrastructure in the United States or elsewhere.

For sports enthusiasts, The Greatest Rivalry: India vs Pakistan is a must-watch!

Witness the raw emotion and electrifying moments of one of cricket's most iconic battles. This docu-series explores the history and passion behind the India-Pakistan rivalry. Watch it on Netflix

Looking for a gripping family drama this weekend?  The Mehta Boys, on Amazon Prime Video, promises a rollercoaster of emotions.

• Boman Irani's directorial debut stars Avinash Tiwary and Shreya Chaudhry in a story of a father and son locked in a tense reunion.

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