Aadit Palicha, the CEO and co-founder of Zepto, responded to recent remarks made by Union Commerce Minister Piyush Goyal at the Startup Mahakumbh 2025 in New Delhi. During the event, which runs from April 3-5, Goyal suggested that India’s startup ecosystem should aim beyond just creating “delivery boys and girls.” He also criticized food delivery apps, claiming they exploit jobless youth as cheap labor, allowing the wealthy to enjoy convenience without leaving their homes.
Zepto CEO Responds on Twitter to Minister Goyal’s Criticism
In response to these remarks, Palicha took to Twitter, defending the role of consumer internet startups like Zepto in the Indian economy. He acknowledged the challenges faced by these businesses but emphasized their contributions to India’s economic growth. Palicha pointed out that Zepto, which was founded just 3.5 years ago, currently employs over 1.5 lakh people, providing livelihoods to a substantial number of individuals. Additionally, Zepto contributes more than ₹1,000 crore in taxes annually, brings in over a billion dollars in foreign direct investment (FDI), and has invested hundreds of crores in strengthening India’s supply chain infrastructure, particularly for fresh fruits and vegetables.
Highlighting the Role of Consumer Internet Startups in Innovation
Palicha went on to highlight the broader importance of consumer internet startups in driving technological innovation. He pointed out that despite criticism, these startups are foundational to the growth of sectors such as artificial intelligence (AI) and cloud computing. “Amazon, Facebook, Google, Alibaba, and Tencent—today’s big players in AI—were all originally consumer internet companies,” Palicha remarked. He argued that India’s future technological advancements depend on the success of local internet companies that generate significant revenue and contribute to the country’s economy.
India’s Need for Homegrown Tech Champions
According to Palicha, India’s lack of large-scale foundational AI models can be traced back to the absence of robust consumer internet companies. He stressed that the Indian startup ecosystem, the government, and investors must focus on building these local champions that can lead the country to global success in technology. The CEO believes that these businesses will eventually drive innovation, creating value for the country and contributing to long-term economic growth.
Zepto’s Long-Term Vision and Commitment to India’s Growth
Despite acknowledging that Zepto is still in the early stages of becoming a truly great internet company, Palicha expressed confidence in his team’s commitment to growth and innovation. He emphasized that any profits Zepto generates will be reinvested into long-term value creation in India. Palicha’s personal vision aligns with this goal, as he dedicated the next few decades of his career to fostering economic dynamism in India, similar to what the United States has achieved over the past several decades.
Read the full post by Zepto CEO Aadit Palicha here.
It is easy to criticise consumer internet startups in India, especially when you compare them to the deep technical excellence being built in US/China. Using our example, the reality is this: there are almost 1.5 Lakh real people who are earning livelihoods on Zepto today – a company that did not exist 3.5 years ago. ₹1,000+ Crores of tax contribution to the government per year, over a billion dollars of FDI brought into the country and hundreds of crores invested in organizing India’s backend supply chains (especially for fresh fruits and vegetables). If that isn’t a miracle in Indian innovation, I honestly don’t know what is.
Why doesn’t India have its own large-scale foundational AI model? It’s because we still haven’t built great internet companies. Most technology-led innovation over the past 2 decades has originated from consumer internet companies. Who scaled cloud computing? Amazon (originally a consumer internet company). Who are the big players in AI today? Facebook, Google, Alibaba, Tencent etc. (all started as consumer internet companies). Consumer internet companies drive this innovation because they have the best data, talent, and capital to put behind it. We need to build great local champions in internet that are generating hundreds of millions of dollars in FCF first if we ever want to get a piece of great technology revolutions. The startup ecosystem, the government, and the owners of large pools of Indian capital need to actively support the creation of these local champions, not pull down the teams that are trying hard to get there.
Zepto is still far away from being a great Internet company that can hold a candle to the global best. But we are executing day in and day out to get there. I can promise that any capital we generate from this business (and it honestly looks like we will) will be invested towards long-term innovation and value creation in India. That is essentially what I am dedicating the next few decades of my life to try to do: create dynamism in the Indian economy and our capital markets, in the same way the Americans have for decades. We have the talent and capital; we just need the execution.
