Zepto CEO Aadit Palicha calls out Deepinder Goyal’s ₹2,500 crore burn claim—sets the record straight

Zepto co-founder and CEO Aadit Palicha has clarified that the quick commerce start-up is not burning over ₹2,500 crore per quarter.

This comes after Zomato founder and CEO Deepinder Goyal told The Economic Times that quick commerce companies were burning ₹5,000 crore per quarter, more than half of which is by Zepto.

“Deepinder Goyal - whom I deeply respect as an entrepreneur - made an inaccurate statement about Zepto. His words were that Quick Commerce was burning 5,000 Crores per quarter of which "substantially more than half of this is by Zepto" - implying that we are losing substantially more than 2,500 crores (INR) per quarter,” Palicha wrote in a LinkedIn post.

“This statement is verifiably untrue and it will be clear when we publicly file our financial statements,” he added.

“However, I know Deepinder, and I know he has only good intentions; this quote could have been taken out of context or said as an honest mistake,” said Palicha.

“Deepinder started Zomato when I was 5 years old and he has become a role model for the Indian startup ecosystem. I have personally read all of his blogs and it's a privilege to learn from and compete with Zomato. Our genuine intention is to build the Indian startup ecosystem together in good-faith, and build a world-class product for the Indian consumer,” said Palicha.

In June 2024, quick commerce startup Zepto raised $665 million in funding at a $3.6 billion valuation. This came just nine months after the company raised $235 million at a $1.4 billion valuation.

Zomato-owned quick commerce platform Blinkit is the largest quick commerce platform in India. Blinkit plans to increase its dark stores to 2,000 by the end of 2026.

Quick commerce is redefining India's urban retail landscape in metros and Tier 1 cities. In these areas, 42% of consumers prioritise instant deliveries for urgent needs, while 65% rely on quick commerce for essentials like packaged foods—leading to a 28% reduction in foot traffic at physical stores, according to PwC.

Quick commerce in India expanded at a staggering 73% annual growth rate in FY24. 77% of Indian shoppers are gravitating towards omnichannel brands, embracing a blend of digital and in-store purchases, the report said. India’s retail market is projected to reach $1,892 billion by FY30, growing at a compound annual growth rate (CAGR) of 10.3%. Leading this charge is e-commerce, expected to grow at a CAGR of 22.5%, reaching $220 billion by FY30.