Aadit Palicha, CEO and co-founder of Zepto, recently shared his audacious outlook for the future of Indian internet companies on LinkedIn. In a passionate and perceptive post, Palicha outlined the difficulties Indian consumer internet startups face and emphasised the country’s need to develop local leaders who can propel technological innovation globally.
A Miracle in Indian Innovation
Founded just 3.5 years ago, Zepto has already made a remarkable impact. Palicha proudly pointed out that Zepto has enabled almost 1.5 lakh individuals to earn a livelihood. The company has contributed over ₹1,000 crore in taxes annually, brought in more than a billion dollars of Foreign Direct Investment (FDI), and invested significantly in organizing India’s backend supply chains, particularly for fresh produce. According to Palicha, this achievement reflects a “miracle in Indian innovation.”
The Gap in Foundational AI Models
Palicha raised a fundamental question: Why doesn’t India have its large-scale foundational AI model? He argues that the answer lies in the country’s lack of globally significant internet companies. Drawing comparisons with global giants like Amazon, Facebook, Google, Alibaba, and Tencent, Palicha noted that consumer internet companies have historically driven technological revolutions due to their access to data, talent, and capital.
The Path to Building Local Champions
For India to develop foundational AI models, Palicha asserts that it must first create strong, free cash flow (FCF)-generating consumer internet companies. He called for a concerted effort from the startup ecosystem, government, and financial institutions to support local champions rather than criticize them.
Zepto’s Long-Term Commitment
Palicha acknowledged that Zepto is still far from being a globally benchmarked internet company. However, he promised that any capital generated from the business would be reinvested into long-term innovation and value creation in India. Committed to dedicating the next few decades of his life to this vision, Palicha aims to foster economic dynamism similar to that seen in the United States.
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