Zepto CEO Aadit Palicha Refutes Deepinder Goyal’s Comment on Financial Losses

New Delhi, March 5, 2025 – The competition in India’s quick commerce sector has intensified, not just in market strategies but also in public statements. Zepto CEO Aadit Palicha on Tuesday publicly refuted an “inaccurate statement” allegedly made by Zomato CEO Deepinder Goyal, regarding Zepto’s financial losses. The remarks, which were first reported in an Economic Times article, suggested that Zepto was burning over ₹2,500 crore per quarter, a figure that Palicha has now strongly denied.

Goyal’s Alleged Statement on Zepto’s Losses

According to the Economic Times report, Deepinder Goyal implied that Zepto’s financial losses were substantially higher than those of Zomato’s quick-commerce arm, Blinkit. The publication quoted Goyal stating:

“We think the total burn for all companies in quick commerce is around ₹5,000 crore per quarter, conservatively speaking. Substantially more than half of this is by Zepto… compared to this, we’re burning very low numbers. Last quarter, Blinkit burned around ₹35 crore per month on average.”

This statement, if accurate, would suggest that Zepto’s financial losses are exceeding ₹2,500 crore every quarter, significantly impacting its profitability in the hyper-competitive quick commerce space.

Aadit Palicha’s Response: ‘This Statement Is Verifiably Untrue’

Shortly after the article was published, Aadit Palicha took to LinkedIn to counter Goyal’s claim, asserting that Zepto’s financials were not in line with the figures mentioned.

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

He further clarified that while he did not intend to engage in a prolonged public debate over financials, he felt the need to set the record straight. Zepto, which recently became the first quick commerce startup in India to turn operationally profitable in several key cities, has been aggressively working towards financial sustainability.

‘Deepinder Is a Role Model’ – No Hard Feelings Between the CEOs

Despite his disagreement with Goyal’s remarks, Palicha maintained a respectful tone in his response, acknowledging Zomato’s contribution to India’s startup ecosystem.

“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.”

Palicha went on to highlight that he had deep admiration for Goyal, stating:

“Deepinder started Zomato when I was five 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.”

By emphasizing mutual respect and admiration, Palicha made it clear that Zepto had no plans to escalate the issue further, stating that the company would not make any additional comments to avoid an unnecessary public back-and-forth.

The Larger Context: Competition in India’s Quick Commerce Industry

The quick commerce industry in India, dominated by players like Zepto, Blinkit, Swiggy Instamart, and BigBasket, has been witnessing aggressive expansion, intense price wars, and a race towards profitability.

• Zepto, which raised over $200 million in its last funding round, has been scaling operations rapidly and focusing on operational efficiency. The company recently reported profitability in key metro cities, marking a significant milestone in the industry.
• Blinkit, acquired by Zomato in 2022, has also been working towards cost reduction and has seen significant growth in order volumes. However, its financials remain under scrutiny as it continues to scale.
• Swiggy Instamart, backed by Prosus and SoftBank, has been strategically expanding its footprint but is also balancing its growth with a push for profitability.
• Tata-owned BigBasket’s BB Now has emerged as a strong contender, leveraging Tata’s retail ecosystem to compete effectively with Zepto and Blinkit.

Why Does This Exchange Matter?

The public back-and-forth between Zepto and Zomato reflects the high-stakes battle unfolding in the quick commerce industry. Financial health, burn rates, and profitability have become key concerns for investors, especially in a market where deep discounting and high logistics costs have traditionally made sustainability challenging.

Additionally, with India’s IPO market heating up, startups like Zomato, Zepto, and Swiggy are under pressure to prove their financial viability.

Market analysts believe that such competitive tensions are normal in a high-growth sector but also highlight the importance of financial transparency.

“Zepto and Blinkit are both competing aggressively in the 10-minute grocery delivery segment, and naturally, profitability is a major factor. However, such public exchanges indicate that companies are under investor pressure to justify their financial strategies,” said Rakesh Mehta, a fintech analyst at Bernstein.

A Temporary Conflict or Sign of Deeper Competition?

While Zepto’s CEO has dismissed Goyal’s remark as an “honest mistake,” the incident highlights the intense scrutiny faced by quick commerce startups. As the industry moves towards sustainable growth and potential IPOs, financial transparency, profitability, and strategic execution will be key differentiators.

For now, investors and analysts will closely watch Zepto’s upcoming financial filings to see if Palicha’s claims hold true—and whether Zomato or Blinkit respond to this unexpected controversy.