Zepto co-founder accuses rival CFO of smear campaign

Aadit Palicha (right), co-founder of quick commerce platform Zepto, accused the chief financial officer (CFO) of a competing firm of orchestrating a smear campaign against Zepto.

He claimed the rival CFO spread false information to investors, media, and social media through proxy sources and used bots to promote a negative narrative online.

Palicha defended Zepto’s financial situation, highlighting improvements in gross order value and EBITDA.

He emphasized the company has a strong cash position and denied rumors of large-scale store closures.

The quick commerce sector is highly competitive, with various companies fighting for market share in this rapidly changing industry.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ The high-stakes quick commerce race driving aggressive competition

The allegations come amid unprecedented growth in India’s quick commerce sector, where daily order volumes have more than doubled year-over-year to reach 4.15-4.45 million by March 2025 1.

This market has Blinkit leading with 1.65-1.75 million daily orders, Zepto close behind at 1.45-1.55 million, and Swiggy Instamart at 1.05-1.15 million orders daily, creating intense pressure to maintain growth trajectories 1.

Zepto has shown strong financial performance, reporting revenue of INR 4,454 Cr while significantly reducing its loss percentage and improving contribution margin per order from INR 8 to INR 0.5 2.

With the quick commerce industry now valued at over $6.5 billion, the financial stakes justify aggressive competitive strategies as companies fight for market dominance and investor confidence 1.

The rapid expansion of dark store networks by all players creates substantial operational costs that require continued growth to justify, making market perception crucial for future funding rounds.

2️⃣ Smear campaigns as competitive weapons in high-growth markets

Corporate smear campaigns typically employ specific tactics: spreading false information, misrepresenting data, and creating artificial grassroots movements to damage competitor credibility 3.

The accusation of sharing “false numbers and Excel sheets” with journalists aligns with documented competitor tactics of selectively editing information to create distorted narratives about rivals’ financial health 3.