Two of India’s most powerful startup founders, Deepinder Goyal of Zomato and Aadit Palicha of Zepto, got into a furious public argument early March 2025.
The debate centred on the financial viability and sustainability of fast-growing rapid commerce businesses in India, a sector that has expanded dramatically over the previous few years.
Palicha responded strongly when Goyal’s remarks on the industry’s high cash burn, especially directed towards Zepto, This conversation exposed the financial difficulties experienced by businesses in this high-growth but capital-intensive sector as well as the competitive character of the rapid commerce area.
This paper explores thoroughly the background of Zomato and Zepto, the specifics of the conflict, the industry responses, and the wider consequences of this conflict for the rapid commerce sector.
Zomato and Zepto Background
From Restaurant Discovery to Quick Commerce, Zomato
Deepinder Goyal launched Zomato in 2008 as a restaurant discovery tool before growing into meal delivery and then into the rapid commerce industry by acquiring Blinkit.
Offering services ranging from online meal ordering to restaurant listings and customer ratings, Zomato has grown over years into one of India’s biggest food tech startups.
Competing with other behemoths like Swiggy Instamart and Zepto, Zomato’s rapid commerce division Blinkit has positioned itself as a significant participant in the market.
Having a sizable market share, Blinkit has rapidly extended its dark store network to enable it to lower delivery times and satisfy the increasing demand for quick deliveries.
Zepto: The New Interrupter in Fast Retail
Co-founded by Aadit Palicha and Kaivalya Vohra in 2021, Zepto gained recognition in the Indian startup scene quite rapidly. The company specializes in quick delivery, offering everyday needs within ten minutes and promising food.
Zepto, a rather recent arrival, has quickly grown its business and drawn a devoted customer base, particularly in metropolitan areas where speed and convenience are significant differences.
Zepto has been able to rapidly expand its activities under strong venture capital support. Its business plan centers on establishing dark businesses in high-density locations so that delivery stay as fast as they may be. This approach has helped the business stand out in the very cutthroat fast-moving consumer sector.
The Conflict Develops
The argument started when Deepinder Goyal boldly asserted in an interview with The Economic Times the financial viability of fast-moving businesses in India.
Goyal claims that the sector overall was burning about ?5,000 crore per quarter; Zepto was supposedly one of the main causes of this financial loss.
Goyal said that Blinkit only accounted for 2-3% of the industry’s total cash burn although having a 40?45% market share.
Conversely, Zepto allegedly burned in the last quarter alone between ?2,200??2,300 crore.
3. Zomato managed to acquire market share while spending only 4% of what Zepto claimed burned in fast trade activities.
If accurate, these claims presented Zepto as an unsustainable company spending significantly without a clear road to profitability.
The reply of Aadit Palicha
Not long after Goyal’s comments got public, Aadit Palicha answered with a thorough LinkedIn article, rigorously debunking the assertions. Labeling Goyal’s remarks as “verifiably untrue,” Palicha promised investors that Zepto’s forthcoming financial reports will offer the right numbers.
Palicha responded in a measured manner, noting Goyal’s status in the field but implying that either the comments were taken out of context or derived from false information.
He underlined Zepto’s dedication to financial openness and sustainable development, therefore hinting implicitly that Goyal’s remarks might have been motivated more by rumors than by hard data.
Before answering publicly, Zepto’s executive team apparently carried out an internal examination to guarantee accuracy. This degree of attention emphasizes the need of keeping credibility in a very competitive and watched industry like rapid trade.
Industry Comments and Speculation
Based on Goyal’s remarks, industry observers started speculating on the reasons behind them. Some thought his comments were shaped by industry rumors, which abound at major business gatherings.
Others said given the continuous struggle for market supremacy, Zomato’s action might have been a calculated attempt to erode investor confidence in Zepto.
According to reports, Zepto’s partners and investors kept careful eye on the matter to make sure the business’s financial status stayed robust in front of public criticism.
While rapid commerce businesses do need large capital investment, some observers noted that growth-stage startups like Zepto sometimes operate at a loss first while increasing their market dominance.
Employees in the rapid commerce sector watched the conflict attentively in meantime. Many regarded it as a mirror of the high-stress climate in which these businesses run, where financial sustainability and profitability remain primary issues.
The Competitive Landscape of Quick Commerce
Driven by changing consumer tastes and supply chain technology improvements, India’s fast commerce industry has seen spectacular expansion.
Constant innovation by the leading competitors in this space?Blinkit (Zomato), Zepto, and Swiggy Instamart?helps to increase efficiency and grab more of the market.
Blinkit Strategy for Zomato
With about 1,000 operating sites as of December 2024, Blinkit has aggressively grown its dark store network. Aiming to rise this figure to 2,000 by the end of 2025, the corporation has set high goals. This development is supposed to increase Blinkit’s sectoral supremacy and raise delivery speeds.
Zepto’s Differential Methodology
Zepto’s 10-minute delivery promise still sets it apart most importantly. The company’s approach is based on a network of deliberately situated dark stores allowing extremely quick delivery.
Zepto has effectively entered a niche market stressing convenience and instantaneous service by concentrating on metropolitan centers.
public view and CEO dynamics
Goyal and Palicha have had a professional relationship in spite the public quarrel. Just weeks before the issue started, the two were pictured cordially attending a startup conference.
This shows that even if there is fierce competition, industry leaders that want to develop the rapid commerce sector together nevertheless show mutual respect.
Though spectacular, industry watchers point out that these conflicts are not unusual in fast-growing sectors where market share and investor confidence are quite important.
Although the interaction between Goyal and Palicha generated headlines, it also elevated significant discussions on financial sustainability and business strategies in fast commerce to front stage.
Deepinder Goyal and Aadit Palicha’s public dispute provides a window into the fiercely competitive rapid commerce industry of India.
Financial strategy and sustainability remain hot topics of discussion even as businesses like Zomato (Blinkit) and Zepto fight for market leadership.
Although public spats of this kind can cause brief waves in the sector, long-term success of these businesses will rely on their capacity to strike a balance between expansion and financial restraint.
Eyes will be on how these businesses negotiate the difficulties of increasing operations while preserving profitability as the sector develops.
In the end, this debate emphasizes the developing pains of a fast rising sector yet establishing itself in India’s changing digital economy.
Stay Connected and Share Your Stories
For all those inspired by stories of resilience and ambition, follow us on X/Twitter and on Instagram . For those with untold stories that you would love to share, please send them to contact@thephilox.com
