Zepto vs Zomato: Aadit Palicha refutes Deepinder Goyal's 'cash burn' claims

In a recent interview, Zomato founder Deepinder Goyal claimed that quick-commerce platform Zepto burned Rs 2,200-2,300 crore last quarter

Zepto CEO Aadit Palicha on Tuesday responded to Zomato founder Deepinder Goyal’s remarks on the financial state of India’s quick commerce sector. Disagreeing with the Zomato founder, Palicha took to social media to counter Goyal’s claim that Zepto is burning over Rs 2,500 crore per quarter, calling the statement “verifiably untrue”.

 

What did Deepinder Goyal say about Zepto?

The disagreement stems from an interview in which Goyal estimated that India’s quick commerce industry is collectively burning around Rs 5,000 crore in cash every quarter. He suggested that Blinkit—Zomato’s quick commerce arm — accounts for just 2-3 per cent of that amount, despite holding a 40-45 per cent market share.

 

 

However, Goyal went on to state, “They (Zepto) have burned Rs 2,200-2,300 crore last quarter, and we have burned 4 per cent of that but still gained market share, so how does it matter?”

 

Zepto responds to Goyal

In response, Palicha defended Zepto’s financials, asserting that the figures quoted by Goyal were incorrect. “This statement is verifiably untrue, and it will be clear when we publicly file our financial statements,” Palicha wrote.

 

He acknowledged his respect for Goyal as an entrepreneur and suggested that the comment may have been taken out of context or made as an honest mistake. 

 

“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,” he said. However, he reiterated that Zepto would not engage further in a public back-and-forth.

 

“Our genuine intention is to build the Indian startup ecosystem together in good-faith, and build a world-class product for the Indian consumer... To all the journalists reaching out to me now, we will refrain from commenting on this again to avoid an unnecessary public back-and-forth. Thanks everyone!” Palicha said.  

 

Zepto market position, IPO plans

Zepto, which has positioned itself as the only independent player in India’s competitive quick commerce space, has raised over $1.3 billion in funding in the past year and is aiming for a public listing in 2025. According to a report by brokerage firm BofA Research, Zepto led the industry in monthly active users in January, surpassing rivals Blinkit and Swiggy Instamart.

 

Meanwhile, a February report by Citi Research, as cited by The Economic Times, pegged Blinkit’s market share at 41 per cent and Swiggy Instamart at 23 per cent, indicating that Zepto may be at par or even ahead of Instamart.

 

Despite the intense competition and high cash burn associated with quick commerce, Goyal maintained that Blinkit remains focused on sustainable growth. “We don’t engage in deep discounting, and our execution has been good… The discipline with which we invest our cash should also stay intact,” he stated.

 

With Zepto preparing for its IPO and the quick commerce landscape becoming increasingly competitive, the industry is set for further consolidation and scrutiny over profitability in the coming months. Other competitors in the segment include Walmart-owned Flipkart Minutes, Tata-backed BigBasket, and Amazon’s grocery delivery service.