In a heated exchange reflecting India’s evolving startup landscape, BJP MP and CAIT Secretary General Praveen Khandelwal strongly criticized Zepto CEO Aadit Palicha for defending quick commerce. The MP accused Zepto and similar platforms of undermining traditional kirana stores under the guise of innovation—an accusation that has sparked national debate.
Goyal Urges Startups to Aim Higher
At the recently held Startup Mahakumbh, Union Minister Piyush Goyal questioned the true value of India’s current startup wave. He expressed disappointment with the dominance of food delivery, quick commerce, and fantasy sports in India’s startup ecosystem, urging entrepreneurs to look toward deep-tech sectors like AI, battery innovation, and semiconductors.
“Startups must focus on solving real problems and building foundational technologies,” he said. “Why can’t we build the next Tesla or Huawei out of India?”
Zepto CEO Aadit Palicha Defends Quick Commerce
Aadit Palicha, co-founder of Zepto, fired back by defending consumer-facing internet businesses. According to him, these platforms are essential in driving large-scale innovation, job creation, and technological infrastructure.
Palicha noted that global tech giants like Amazon and Alibaba began as consumer-focused ventures before expanding into advanced innovation. He emphasized Zepto’s achievement of employing over 150,000 people within three years—a feat he believes contributes to national development.
Khandelwal Responds: “Kirana Store Collapse is Not Progress”
Not impressed by the numbers, MP Praveen Khandelwal said Palicha was missing the point. In a scathing response, Khandelwal stated:
“Burning billions in foreign capital to dismantle our time-tested kirana store system isn’t innovation—it’s disruption of the worst kind.”
He argued that India’s economic ecosystem must prioritize long-term value over short-term valuation. “True innovation solves national problems, not just urban convenience,” he added.
Kirana Stores Facing the Heat
Quick commerce’s aggressive pricing and discounting have taken a toll on traditional retailers. Reports estimate that over 2 lakh kirana stores have shut down in the past year alone as consumer behavior shifts toward instant delivery.
The All India Consumer Products Distributors Federation (AICPDF) has accused these platforms of anti-competitive practices, lobbying for government support to save local retail ecosystems.
Industry Leaders Weigh In
The controversy has drawn opinions from across India’s startup scene. boAt co-founder Aman Gupta supported Goyal’s stance, calling on entrepreneurs to “dream beyond delivery apps.” He highlighted the importance of benchmarking Indian startups against global players—not just in valuation but in impact.
The Bigger Picture: Innovation vs. Inclusion
This debate reflects a broader dilemma—how to balance disruptive innovation with social responsibility. As India races toward a digital future, preserving traditional economic models like the kirana network is becoming a priority for policymakers.
India’s startup ecosystem stands at a crossroads: Will it build for global innovation, or will it burn capital chasing convenience?