'It's easy to criticise consumer internet startups in India...we created 1.5 lakh jobs—isn't that innovation': Zepto CEO on Goyal's remark

VC-funded quick commerce unicorn Zepto CEO Aadit Palicha has joined other tech leaders in defending India's consumer internet startups, responding to recent remarks by Union Minister Piyush Goyal that questioned whether the country is focusing too heavily on ventures like food delivery, ice cream brands, and fantasy sports apps instead of emerging deep-tech space.

Speaking at the second Startup Mahakumbh, Goyal urged local startups to “re-evaluate their purpose and true value” and to “think big” and “go global,” noting there are only about 1,000 deeptech startups in India—a figure he called “a disturbing sign.”

"We must learn (from other countries). We must be willing to evolve, we have to be able to learn, we want to aspire to be bigger and better and bolder. And we should not shy of the competition," the minister said. "Dukaandari hi karna hai (Do we want to just sell things)?" he asked.

Aadit Palicha's response

In a LinkedIn post, Palicha argued that consumer-facing internet businesses lay the groundwork for large-scale innovation, noting that global tech giants such as Amazon, Google, and Alibaba all started out in consumer internet before evolving into major players in AI and other advanced technologies. He said that consumer internet companies have the "best data, talent, and capital to put behind it." 

"Why doesn’t India have its own large-scale foundational AI model? It’s because we still haven't built great internet companies," he wrote, emphasizing the need for homegrown tech startups that generate substantial free cash flow and reinvest in cutting-edge research. 

Palicha also pointed to Zepto's own rapid rise—employing roughly 150,000 people in just over three years—as an example of "a miracle in Indian innovation." 

He stressed that government policies, local investors, and the broader startup ecosystem should support these “local champion” companies rather than dismiss them.

Palicha further noted that Zepto, despite its significant growth, is still on the path to becoming a globally competitive internet company.

"We are executing day in and day out to get there,” he said, adding that any profits the startup generates will be reinvested into “long-term innovation and value creation in India.”

"That is essentially what I am dedicating the next few decades of my life to try to do: create dynamism in the Indian economy and our capital markets, in the same way the Americans have for decades. We have the talent and capital; we just need the execution," he added.

Pai's response to Piyush Goyal's remarks

Former Infosys Chief Financial Officer Mohandas Pai also responded to the comments made by Union Minister Piyush Goyal regarding the Indian startup ecosystem's global ambitions.

Mohandas Pai, in a post on X, wrote, "Minister Piyush Goyal should not belittle our startups but ask himself what he has done as our Minister to help deep tech startups grow in India? It is easy to point fingers at them.”

Pai added that startups have faced challenges such as angel tax scrutiny, restrictions on investment by endowments, and limited involvement of insurance companies—factors he believes have impeded their progress.

"...@RBI regularly harasses overseas investors on remittances and AIF’s, treat them badly, cos FE rules. China invested 845b$ from 2014/24 India only 160b$! Why is Minister @PiyushGoyal @AshwiniVaishnaw not helping solve these issues?," he wrote. 

@chandrarsrikant pl check who made this slide? Chinese? From Hongkong? These are bad comparisons. India has startups in all those areas too but they are small. Minister @PiyushGoyal should not belittle our startups but ask himself what has he done as our Minister to help deep… https://t.co/Kyy2hwy2Bu

— Mohandas Pai (@TVMohandasPai) April 3, 2025