In a significant development within India’s quick commerce sector, Zepto’s co-founder and CEO, Aadit Palicha, has publicly accused the chief financial officer (CFO) of a competing company of orchestrating a smear campaign against Zepto. Palicha made these allegations through a LinkedIn post, asserting that the rival CFO has been disseminating false information to investors, media outlets, and on social media platforms.
Allegations of Misinformation
Palicha claims that the rival CFO has been:
- Contacting Zepto’s investors with baseless allegations.
- Sharing misleading financial data and Excel sheets with journalists through intermediaries.
- Employing bots on social media to propagate a negative narrative about Zepto.
He stated, “Candidly, this episode is below the stature expected of the CFO of a high-quality company, and makes it obvious that they are starting to get nervous about how fast Zepto’s EBITDA is improving.”
Zepto’s Financial Performance
In response to the alleged smear campaign, Palicha shared key financial metrics to underscore Zepto’s growth and stability:The Economic Times
- Gross Order Value (GOV): Increased from ₹750 crore per month in May 2024 to ₹2,400 crore per month in May 2025.
- EBITDA Improvement: Improved by 20 percentage points between January and May 2025.
- Cash Burn Reduction: Decreased by approximately 65% over the same period.
- Growth Rate: Maintained a 4–5% month-on-month growth, translating to a 20% GOV increase from January to May.
Palicha also mentioned that Zepto expects the majority of its dark stores to be fully EBITDA-positive by the next quarter and that the company’s overall EBITDA and operating cash flow are nearing breakeven.
Industry Context
Zepto operates in a highly competitive quick commerce market, contending with players like Blinkit (owned by Eternal, formerly Zomato), Swiggy Instamart, Flipkart Minutes, and Tata BigBasket. The sector has witnessed rapid growth, with companies striving for profitability and market share. Zepto, valued at $5 billion, has emerged as the second-largest player in the industry, trailing only Blinkit.
Conclusion
The allegations by Zepto’s CEO highlight the intense competition and high stakes in India’s quick commerce sector. As companies vie for dominance, such disputes underscore the challenges and pressures faced by emerging startups in maintaining their reputation and investor confidence.Moneycontrol