Zepto CEO Aadit Palicha has responded to Union Minister Piyush Goyal’s recent “dukandari” remark, which has gone viral across social media and the startup ecosystem. Reacting to the broader criticism aimed at consumer-facing startups, Palicha highlighted the impact of his quick commerce company, Zepto, and described its journey as a “miracle in Indian innovation.”
In a detailed post on X, Palicha highlighted the contributions Zepto has made in a short span of just 3.5 years, arguing that India must not undermine the value and future potential of internet companies.
Aadit Palicha Defends Indian Consumer Startups Against ‘Dukandari’ Label
Aadit said, “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.”
He further said, “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.”
On India’s absence from foundational AI breakthroughs, he said, “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.”
Explaining how consumer internet startups fuel technological progress, he said, “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.”
Reflecting on Zepto’s future vision, he said, “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… Any capital we generate from this business will be invested towards long-term innovation and value creation in India.”
What Piyush Goyal Said at Startup Mahakumbh
Speaking at the Startup Mahakumbh, Union Minister Piyush Goyal commented on the direction of India’s startup ecosystem. Comparing Indian startups to those in China, Goyal questioned the country’s focus on delivery apps and e-commerce, while Chinese entrepreneurs, he noted, are working on advanced technologies like AI, electric vehicles and semiconductors.
Piyush Goyal said, “We are making food/hyper delivery apps; creating cheap labour so that the rich can have a meal without stepping out, while the Chinese are working on EVs, AI and semiconductors.”
He further said, “Do we have to make ice cream or chips? Dukaandari hi karna hai.”
Why Is India Lagging Behind in Deep Tech and AI?
Aadit Palicha addressed the very concern raised by Piyush Goyal, offering a broader context. According to him, India’s lack of foundational AI models and deep tech companies isn’t because of consumer internet startups—it’s because the ecosystem has yet to fully support them to scale.
Aadit Palicha said, “Why doesn't India have its own large-scale foundational AI model? It's because we still haven't built great internet companies.”
He added, “Most technology-led innovation over the past 2 decades has originated from consumer internet companies… Who are the big players in AI today? Facebook, Google, Alibaba, Tencent etc. (all started as consumer internet companies).”
On how India can catch up, he said, “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.”
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