Zepto CEO Aadit Palicha: Zepto is not an “Amazon or Walmart” but an Indian company with ...

Zepto, the fastest-growing quick-commerce startup in the Indian market, has raised an additional $350 million from domestic investors. CEO Aadit Palicha aims to make Zepto a majority Indian-owned company and eventually list it on Indian stock exchanges. In an interview with Economic Times, CEO Palicha said that Zepto is not an “Amazon or Walmart” but an Indian firm with plans to go public on Indian bourses. Palicha claimed that Zepto’s latest funding is one of the largest domestic-only rounds for an Indian startup.

Founded by Stanford University dropouts Palicha and Kaivalya Vohra, Zepto has emerged as one of the fastest-growing consumer internet firms in India. According to a recent report by Motilal Oswal, Zepto is the second largest player in the sector with a 29% share in the quarter ended June 30, after Blinkit which had a 46% share. The report – which did not include Tata Group BigBasket and Flipkart Minutes – pegged Swiggy Instamart’s market share at 24%.

Why the Big need to become an Indian company

The company's focus on domestic ownership is driven by a desire to build trust with policymakers, the public, and shareholders. This move also aligns with the government's increasing scrutiny of foreign-owned quick-commerce firms and their operations in India. After the latest funding, more than 30% of Zepto's stake is with Indian shareholders. These include Manipal group’s Ranjan Pai, Ramesh and Rajeev Juneja of Mankind Pharma and the Motilal Oswal group. The company’s overseas investors include General Catalyst, Y Combinator and Nexus Venture Partners.

"Zepto is not a rival to Kirana stores"

Palicha stressed that Zepto is not a competitor to traditional Kirana stores but rather a complementary service that caters to specific consumer needs, particularly impulse and last-minute purchases. He asserts that the company is a net job creator and contributes to India's growing consumption story.

"We don’t accept claims made without real data. The allegations of predatory pricing are not true. Only 0.2% of units sold on our platform in FY24 were below-cost price. 99.8% of units were sold above the cost price given by the manufacturer, with 80% sold at a margin above 20%,” he said. "If anyone doubts this, we invite them to check our books, which are audited by Ernst & Young."

He said that what is happening is a shift in consumer behaviour, where certain categories — like impulse or last-minute purchases — are coming to quick commerce,” he said, adding: “Bulk and routine purchases remain with Kiranas.”

Success mantra is convenience and efficiency, not pricing

To address concerns about predatory pricing and its impact on Kirana stores, Palicha said that Zepto adheres to fair pricing practices and that the majority of its products are sold at a significant margin. He attributes the shift in consumer behavior, particularly towards quick commerce, to the convenience and efficiency offered by platforms like Zepto.

Zepto's monthly cash burn rate is high

While Zepto has achieved rapid growth, it has also incurred significant costs, including high cash burn rates for dark store expansion and customer acquisition. Palicha acknowledges these costs but expresses confidence in the long-term profitability of the business, citing the increasing profitability of existing dark stores and the decreasing timeline for new stores to break even.



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