Zepto vs Blinkit: Aadit Palicha counters Deepinder Goyal’s claims on quick-commerce cash burn, terms it 'verifiably untrue'

Aadit Palicha, the co-founder of Zepto -- the country's only independent player in the quick commerce segment, Tuesday took to LinkedIn to refute Zomato CEO Deepinder Goyal's "inaccurate" statement that Zepto is burning cash at a higher rate than any others in the segment. 

In a recent Economic Times article, Goyal had claimed that the total quarterly burn for the quick commerce industry is around ₹5,000 crore. "Substantially , more than more than half of this is by Zepto... Compared to this, we're burning very low numbers. Last quarter, Blinkit burned around ₹35 crore per month on an average," he said. Blinkit is Zomato's quick commerce unit. 

"They (Zepto) have burned ₹2,200-2,300 crore last quarter and we have burned 4% of that but still gained market share. So how does it matter? We'll just do the right thing for the business," Goyal told The Economic Times.

Goyal's statement implies a quarterly loss exceeding Rs 2,500 crore for Zepto. 

However, Palicha challenged this assertion, insisting it will be proven incorrect once Zepto's financial statements are publicly available. 

Defending his company’s financial health, Palicha clarified that the statement made by Goyal does not reflect their actual situation. "However, 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 added. 

Despite the misstatement, Palicha underscored the shared goal of fostering the Indian startup ecosystem as a community. "Deepinder started Zomato when I was 5 years old and he has become a role model for the Indian startup ecosystem. I have personally read all of his blogs and it's a privilege to learn from and compete with Zomato," he said.

He noted that both Zepto and Zomato are aligned in their commitment to creating innovative and impactful solutions for consumers. Palicha emphasised that Zepto intends to contribute significantly to this ecosystem by developing a world-class product tailored for the Indian market. 

Further, Palicha said that Zepto has decided not to engage further in this matter publicly to avoid unnecessary disputes. Palicha assured that their focus remains on their business objectives and collaborations rather than engaging in public back-and-forths.