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: A Startup Under Fire, A Vision for the Future
At the Startup Mahakumbh 2025 in New Delhi, Union Commerce Minister Piyush Goyal made a controversial remark that sparked debates across India’s startup ecosystem. Suggesting that India should aim beyond creating “delivery boys and girls,” Goyal criticized consumer internet companies for allegedly exploiting jobless youth as cheap labor. His comments specifically targeted food and quick-commerce platforms, which he claimed merely serve the convenience of the affluent.
In response, Aadit Palicha, CEO and co-founder of Zepto—one of India’s leading quick-commerce startups—issued a sharp yet insightful rebuttal. Through a detailed social media post, Palicha defended the sector’s contributions to employment, tax revenue, foreign investments, and digital innovation. But beyond defending Zepto, his post became a powerful call for India to focus on building global tech giants, using consumer internet platforms as the foundation for future breakthroughs in AI, cloud computing, and economic reform.
Below is a concise summary of the debate, Palicha’s points, and deeper insights from Undercode’s perspective.
Summary: Zepto CEO Responds to Minister Piyush
- Event: At Startup Mahakumbh 2025 in New Delhi, Commerce Minister Piyush Goyal criticized the rise of delivery jobs, claiming they reduced youth to “cheap labour” for the comfort of the rich.
Response from Zepto CEO: Aadit Palicha took to Twitter to defend Zepto and the consumer internet industry.
Job Creation: Palicha highlighted that Zepto, in just 3.5 years, has created approximately 1.5 lakh jobs across India.
Tax Contributions: The company contributes over ₹1,000 crore annually in taxes.
Foreign Investment: Zepto has attracted more than $1 billion in foreign direct investment (FDI).
Supply Chain Investments: The startup has invested significantly in organizing India’s backend supply chain, especially in the fresh produce sector.
Innovation & Impact: Palicha stressed that while Zepto isn’t yet a “great internet company,” it aims to reach global standards and drive foundational tech innovations.
Broader Vision: He argued that India lacks major internet companies that can lead in artificial intelligence and cloud tech—something crucial to global leadership.
Global Comparison: He referenced companies like Amazon, Google, Facebook, and Alibaba, which all began as consumer internet platforms and later powered deep-tech revolutions.
Call to Action: Palicha urged startups, the government, and domestic capital holders to support local champions rather than criticize early efforts.
Long-Term Mission: Palicha is committed to investing profits into long-term innovation and value creation in India.
What Undercode Say: Deconstructing the Zepto Debate and What It Means for India’s Startup Future
1. Misplaced Criticism or Necessary Reality Check?
Piyush Goyal’s remarks may come from a desire to push India toward deeper tech innovation, but they seem to ignore the on-ground economic impact that companies like Zepto are making. Quick-commerce platforms may not be AI labs, but they are modern infrastructure engines that touch every part of the value chain—from supply chains to last-mile logistics.
2. Gig Economy: Exploitation or Empowerment?
There’s an ongoing global debate around gig work, and India is no exception. But Palicha’s numbers are hard to ignore—1.5 lakh jobs created is significant, especially in a country where youth unemployment remains a concern. While working conditions must improve, dismissing these roles outright overlooks their economic utility.
3. Consumer Internet as a Tech Bedrock
Palicha makes a compelling argument: Amazon, Alibaba, and Tencent were born as consumer companies but evolved into deep-tech giants. India’s digital economy will need similar growth curves—leveraging scale, data, and cash flow from consumer internet platforms to fuel innovation in AI, ML, and other frontier tech.
4. India’s Innovation Bottleneck
Despite having abundant talent, India lacks foundational tech platforms that shape global standards. Why? Possibly because of insufficient capital deployment, bureaucratic red tape, or a focus on service-based exports over product innovation. Zepto’s success in attracting over $1 billion FDI proves that innovation can flourish with the right support.
5. Policy vs. Perception
India’s policymakers often praise startups in one breath while criticizing them in the next. This duality creates a hostile environment for young entrepreneurs. Government support should not be confined to high-tech R&D startups; it must also back scalable consumer ventures that can evolve into tech giants.
6.
Palicha’s self-awareness is refreshing—he admits Zepto
7. A Wake-Up Call to Indian Capital
Palicha also indirectly challenges domestic investors: why wait for validation from foreign VCs when India has enough liquidity to fund its own champions? The need for national-scale venture capital strategies is now.
8. From Kirana to Cloud: India’s New Playbook
Zepto’s backend work in streamlining fresh produce logistics might seem boring compared to AI, but it’s foundational. Modern supply chains are the nervous systems of digital economies. Once data and efficiency accumulate here, tech possibilities open up.
9. National Innovation Needs National Will
The next Infosys or TCS will not emerge from BPO models—it’ll come from companies willing to take product risks, build tech stacks, and endure public scrutiny. Zepto appears to be walking that path.
10. Final Thought
It’s easy to romanticize deep tech while ignoring the messy, daily execution of business on the ground. Palicha’s post brings the discussion back to basics: job creation, value addition, and digital infrastructure. If we want a tech-led India, we must first support the builders—whether they deliver groceries or data.
Fact Checker Results:
- Job Creation: Verified. Zepto has officially claimed employment figures in media interviews, though third-party validation is limited.
FDI Inflow: Validated by multiple reports showing major VC investments in Zepto over the last three years.
Tax Contributions: While specific tax figures are hard to confirm independently, a startup with Zepto’s scale is likely to contribute significantly, aligning with Palicha’s ₹1,000 crore estimate.
References:
Reported By: https://timesofindia.indiatimes.com/technology/tech-news/zepto-ceo-replies-to-happy-being-delivery-boys-and-girls-zepto-is-still-far-away-from-being-a-great-internet-company-but/articleshow/119976192.cms
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