Is the CFO of a Rival Company Targeting Zepto with a Smear Campaign?
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Synopsis
In a startling claim, Aadit Palicha, CEO of Zepto, accuses a rival CFO of orchestrating a smear campaign. Allegations include contacting investors and spreading false information. This episode raises questions about competitive ethics in the fast-paced delivery sector, as Zepto reports significant growth amidst these challenges.
Key Takeaways
- Allegations of smear campaigns in competitive markets raise ethical questions.
- Zepto has shown remarkable financial growth in a short period.
- Maintaining integrity in business practices is crucial for sustainability.
- Palicha emphasizes the importance of focusing on execution rather than negative tactics.
- The landscape of quick commerce is increasingly competitive, highlighting the need for transparency.
New Delhi, May 26 (NationPress) Aadit Palicha, the CEO and Co-founder of the rapid delivery service Zepto, has accused a rival company's chief financial officer (CFO) of orchestrating a smear campaign against them in recent days.
In a post on LinkedIn, Palicha outlined that this smear effort involves “contacting our investors to make baseless allegations about us without any empirical backing, disseminating incorrect figures and spreadsheets about Zepto through sources familiar to journalists, and funding social media bots to propagate a negative narrative.”
However, he refrained from disclosing the name of the competing company. In the fast-paced commerce sector, Zepto faces competition from Blinkit (owned by Eternal, previously Zomato), Swiggy Instamart, Flipkart Minutes, and Tata BigBasket, among others.
“Honestly, this incident is beneath the expected conduct from the CFO of a reputable organization, and it clearly indicates that they are becoming anxious about Zepto's rapid improvement in EBITDA,” Palicha commented.
He added that Zepto's gross order value (GOV) has surged from around 750 crores per month in May 2024 to 2,400 crores per month in May 2025.
“Our definition of GOV includes Fruits and Vegetables at selling price and incorporates Ad Revenue. Our EBITDA has enhanced by 20 absolute percentage points (2,000 basis points) from January 2025 to May 2025, nearing single-digit territory. Our cash burn has reduced by about 65 percent during the same timeframe,” the Zepto CEO elaborated.
Palicha expressed optimism that most of their dark stores will achieve EBITDA positivity (factoring in backend supply chain expenses, customer support, last mile, and all fixed/variable dark store costs) by the upcoming quarter.
“At the start of this quarter, we have approximately 7,445 crores in Net Cash in the bank (fully reconciled with bank statements). With our current cash burn trajectory, we have several years of financial runway,” he stated.
He then expressed hope that “this CFO ceases these activities.”
“I welcome healthy and competitive discussions, but dishonesty is unacceptable. Frankly, these calls are merely making it evident to the investor community that we are a formidable competitor. It would be best for everyone to concentrate on execution,” Palicha concluded.
Point of View
It is crucial to recognize the competitive tensions that characterize the quick delivery market. Allegations of smear campaigns highlight the cutthroat nature of the industry, yet they also raise ethical concerns about the lengths to which companies might go to undermine each other. Maintaining integrity in competition is vital for the industry’s sustainability.
NationPress
14/06/2025
Frequently Asked Questions
What is the basis of Palicha's allegations against the rival CFO?
Palicha claims that the rival CFO is contacting investors with baseless allegations, spreading false information, and using social media bots to create a negative narrative about Zepto.
How has Zepto's financial performance changed recently?
Zepto's gross order value has increased from approximately 750 crores to 2,400 crores month-over-month, with significant improvements in EBITDA and reduced cash burn.
What is Zepto's strategy moving forward?
Palicha expects most of their dark stores to achieve EBITDA positivity in the next quarter, indicating a strong financial trajectory.
