Zepto CEO Aadit Palicha Defends India's Startup Ecosystem Following Piyush Goyal's Remarks

Several Indian entrepreneurs have come together to respond to Commerce Minister Piyush Goyal's recent comments about the value and innovation of the Indian startup ecosystem. Notable figures like Zepto CEO Aadit Palicha and Zoho founder Sridhar Vembu have shared their views on this matter, sparking a significant debate within startup circles.

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Indian Startups' Contributions

Palicha, a prominent figure in the startup community, highlighted Zepto's impact on job creation and foreign direct investment (FDI). He described it as a significant achievement in Indian innovation. Palicha emphasised the importance of consumer internet companies in driving technology-led advancements. He argued that the startup ecosystem, government, and capital owners should support local champions rather than undermine them.

Challenges and Opportunities

Vembu interpreted the minister's remarks as a challenge for engineers and technologists rather than criticism. He stated, "What we need are smart engineers who roll up our sleeves and get it done." He stressed the importance of addressing engineering challenges to achieve technological ambitions. Vembu believes that with determination, these goals are attainable.

Infosys' former CFO Mohandas Pai responded to Goyal's critique by urging ministers to support deep-tech startups and remove obstacles. He assured that the industry would deliver on its promises. Pai also noted that comparing India with China is unfair, as India has its own emerging startups, albeit smaller in scale.

Deep-Tech Potential

Anupam Mittal, Shark Tank India judge and founder of Shaadi.com, expressed his admiration for some deep-tech companies he recently encountered. "In the last few months I have met a few deep-tech companies that have absolutely blown me away," he said. Mittal highlighted areas like AI, space-tech, and material science where Indian entrepreneurs are making strides but face challenges in capital and commercialisation.

Palicha defended Indian startups against Goyal's suggestion to shift focus from grocery delivery to high-tech sectors like semiconductors and AI. He pointed out that Zepto provides livelihoods for nearly 1.5 lakh people today, despite being a relatively new company. Palicha also mentioned Zepto's significant tax contributions and investments in India's supply chains.

Consumer Internet Companies' Role

Palicha argued that consumer internet companies have been at the forefront of technology-led innovation over the past two decades. He cited examples like Amazon, Facebook, Google, Alibaba, and Tencent, which started as consumer internet companies before becoming major players in AI and cloud computing. Palicha believes these companies drive innovation due to their access to data, talent, and capital.

He stressed the need for building strong local champions in the internet sector to participate in major technological revolutions. Palicha called for active support from the startup ecosystem, government, and capital owners to create these champions instead of hindering their progress.

Zepto is still striving to become a leading internet company globally but is committed to achieving this goal through consistent efforts. Palicha pledged that any capital generated will be reinvested into long-term innovation and value creation in India. His dedication is focused on fostering dynamism in India's economy and capital markets similar to what has been achieved in the United States over decades.