Zepto CEO Alleges Rival CFO Involved In Smear Campaign Against Firm, Netizens Say App 'Misleading'

Aadit Palicha claimed that the campaign involved contacting Zepto’s investors with unfounded allegations, spreading incorrect data via media intermediaries, and funding bots for negative sentiments.

In a rare and pointed accusation within the high-stakes quick commerce industry, Aadit Palicha, co-founder and CEO of Zepto, claimed that a chief financial officer (CFO) from a competing firm has been orchestrating a smear campaign to tarnish Zepto’s image and business.

In a post on social networking platform, LinkedIn, made on May 25, Palicha refrained from naming the individual but was direct in his criticism: “this episode is below the stature expected of the CFO of a high-quality company.”

According to Palicha, the alleged campaign involves contacting Zepto’s investors with unfounded allegations, distributing incorrect data via known media intermediaries, and even funding bots on social media platforms to fuel negative sentiment. He accused the unnamed CFO of deliberately misrepresenting Zepto’s metrics, using manipulated Excel sheets, and disseminating false claims without evidence.

The timing of these allegations comes as competition in the quick commerce space intensifies, with Zepto facing off against players like Blinkit (owned by Eternal, formerly Zomato), Swiggy Instamart, Flipkart Minutes, and Tata BigBasket. Palicha believes the underlying reason for the smear campaign is Zepto’s rapid financial progress. “They are starting to get nervous about how fast Zepto's EBITDA is improving,” he said.

Financial Metrics and Competitive Dynamics

To counter the narrative, Palicha revealed some internal figures, stating that Zepto’s gross order value (GOV) per month has surged from around Rs 750 crore in May 2024 to Rs 2,400 crore by May 2025. He noted that Zepto includes both ad revenue and the full selling price of fruits and vegetables in its GOV calculation, unlike some of its competitors.

In terms of profitability, Zepto has achieved a 20 percentage point improvement in EBITDA from January to May 2025. “Our cash burn is down approximately 65 per cent over that same period,” Palicha added, though he did not disclose the latest monthly burn rate. 

The CEO claimed that Zepto has continued to grow. “That represents an average 4 per cent to 5 per cent month-on-month growth,” Palicha said, citing a 20 percent rise in GOV over the last five months.

He also emphasised that Zepto’s finances remain robust, claiming, “As of the beginning of this quarter, we have approximately Rs 7,445 crore of net cash in the bank, fully reconciled to bank statements. With our current cash burn trajectory, we have many years of runway.”

While some startups in the segment are scaling back, Zepto co-founder noted that the company is expanding.

Netizens Question Zepto's Pricing Tactics

The post quickly went viral, with some Netizens appreciating the company for their transparency, while others raised questions about the service quality. 

One of the users claimed that the Zepto app itself was 'highly misleading and irresponsible'. The individual, Suvansh Srivastava, said, "When I open the app, it almost always shows that the time to deliver to my house is ‘6 min’. By the time I check out, this is generally increased to 15 min or more. And never have I ever received anything from Zepto in less than 25 minutes or even more." He noted that this delay in delivery has convinced him to not use the app regularly.

Several users pointed out Zepto using dark patterns to hike prices for consumers across their app. In an increasingly competitive quick commerce space, while firms are challenging each other to secure the top spot, focusing on keeping the customer happy will be key to long-term success.