Qcommerce

Zepto CEO Aadit Palicha Alleges Smear Campaign by Rival Company CFO Amid Intensifying Quick Commerce Competition

• ByStartupStory     |    May 26, 2025

In a startling revelation, Aadit Palicha, the Co-founder and CEO of Zepto, has alleged that a top executive from a rival quick commerce company is orchestrating a smear campaign aimed at damaging Zepto’s brand and business. The allegations come at a time when the competition in India’s quick commerce market is intensifying, with players vying for market share and profitability.

Palicha, in a detailed post on social media on May 25, accused the Chief Financial Officer (CFO) of a competing firm of engaging in unethical tactics to tarnish Zepto’s reputation. While refraining from naming the individual or the company, Palicha wrote, “This episode is below the stature expected of the CFO of a high-quality company.”

The Zepto chief elaborated further, saying the alleged smear campaign involved attempts to mislead stakeholders and manipulate public perception. “The CFO has been calling Zepto’s investors and making wild allegations about us with no empirical evidence, giving out false numbers/Excel sheets on Zepto through sources known to journalists, and paying bots on social media to spread a negative narrative.”

Zepto directly competes with Blinkit (owned by Eternal, formerly Zomato) and Swiggy Instamart in the quick commerce space, alongside other emerging players like Flipkart Minutes and Tata BigBasket. Palicha indicated that the alleged attack may stem from Zepto’s rapid business progress. “They are starting to get nervous about how fast Zepto’s EBITDA is improving,” he claimed.

Financial Growth Backed by Numbers

Amidst the allegations, Palicha also shed light on Zepto’s recent financial strides. The company, valued at $5 billion, has reportedly scaled up its monthly gross order value (GOV) from approximately Rs 750 crore in May 2024 to Rs 2,400 crore in May 2025 — a more than threefold increase in one year.

According to Palicha, Zepto’s GOV calculation includes revenue from ads and accounts for fruits and vegetables at their selling price — a methodology he suggests differs from some of its competitors. “Some rivals do not include ad revenue while calculating GOV,” he noted.

He further claimed that the company’s EBITDA has improved significantly. “EBITDA from January 2025 to May 2025 has improved by 20 absolute percentage points (2,000 basis points) and is approaching single-digit territory,” said Palicha.

He also stated, “Our cash burn is down approximately 65% over that same period,” though he did not provide detailed figures. A prior report by Moneycontrol in November had indicated that Zepto was burning approximately Rs 250 crore per month at that time.

Despite the reduction in cash burn, Zepto continues to grow. “That represents an average 4% to 5% month-on-month growth,” Palicha added, referring to the company’s 20% GOV growth between January and May 2025.

Strong Capital Reserves and Store Expansion

Addressing concerns over liquidity and operational scale, Palicha reiterated Zepto’s strong financial footing. “As of the beginning of this quarter, we have approximately Rs 7,445 crore of net cash in the bank, fully reconciled to bank statements. With our current cash burn trajectory, we have many years of runway,” he affirmed.

Contrary to speculations about consolidation or downsizing, Zepto is actively expanding its footprint. Palicha stated that the company is ramping up store launches, maintaining a competitive pace with rivals. Zepto currently operates close to 1,000 dark stores, a number in line with Blinkit and Swiggy Instamart.

Past Industry Clashes and Market Share Debate

This is not the first time Zepto has been at the center of a public dispute. Earlier this year, Deepinder Goyal, CEO of Eternal (formerly Zomato), commented on the sector’s financial landscape, asserting that the quick commerce industry was burning Rs 5,000 crore per quarter and that Zepto was responsible for “substantially more than half” of it. The statement sparked a wave of industry-wide discussions and cast a spotlight on Zepto’s operating model.

In response, Zepto has continued to defend its performance metrics. Despite skepticism from competitors, the company has emerged as the second-largest player in the sector, trailing only Blinkit and surpassing Swiggy Instamart, according to a Moneycontrol report.

However, doubts persist around the comparability of data across platforms. Swiggy’s CEO, Sriharsha Majety, commented during a recent earnings call, “I think it’s difficult to estimate market share accurately as the comparability of GOVs has been limited because of some non-standard definitions. Us and our listed peer have now provided net order value (NOV), which we hope will be a much better barometer and a real measure of consumer spend on the platform.”

Notably, Zepto has not yet released NOV figures, a move that some competitors believe is necessary for industry transparency.

Conclusion

Palicha’s explosive allegations and the financial disclosures underscore both the fierce competition and the rapid evolution of the quick commerce market in India. As Zepto continues to grow and assert its position, questions around transparency, ethics, and standardization in reporting metrics are likely to gain more prominence in the industry discourse.

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