Swiggy CEO says, “we won’t chase volume growth at the cost of poor AOVs”; Aadit Palicha responds, “Instamart has higher cash burn per order”

The competition between India’s top quick-delivery companies got sharper this week. 

Zepto’s co-founder and CEO Aadit Palicha has responded to Swiggy’s Sriharsha Majety, who recently said Swiggy won’t chase “volume growth with poor average order values.” Palicha said the facts show Zepto is growing faster and using less cash to do so.

Zepto CEO Responds to Swiggy CEO’s Comment on Growth and Profitability

Swiggy CEO Sriharsha Majety recently spoke about how his company plans to grow its quick-commerce business, Instamart, while keeping profitability in focus.

“Chasing volume growth at the cost of poor average order values and weak contribution margins is a choice — but not one we want to make. In the long run, we’re playing to win, and that requires staying power.”he said. 

He further added, “You can only have that staying power if a category consistently makes progress on contribution. Operating any other way just isn’t how we work.”

A few days later,  Aadit Palicha pushed back strongly in an interview with Moneycontrol.

“I’m not sure how Instamart having higher cash burn per order than Zepto translates to more staying power,” he said.

Palicha added that Zepto’s numbers prove otherwise.

“Over the last two quarters, we have delivered more orders and burned far less cash per order than Instamart. That’s the reality that isn’t being accurately portrayed to investors,” he said.

His comments came as both companies continue to compete for the top spot in India’s growing quick-commerce sector, where customers expect fast delivery and good value.

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Zepto Crosses 20 Lakh Daily Orders, Outpaces Rivals During Diwali

Earlier this week, Zepto shared that it had crossed 20 lakh daily orders during Diwali, which is about 40% higher than its closest rival. 

This is a big milestone for the Mumbai-based startup, which has grown quickly since it started operations.

Zepto’s focus on faster delivery times and lower operating costs has helped it expand in major Indian cities. The company says it is now managing growth carefully while keeping an eye on profits.

Meanwhile, Swiggy’s Instamart and Zomato’s Blinkit are also pushing to grow their customer base and improve margins. With each company trying to find the right balance between order volume and profitability, the quick-commerce battle in India is far from over.

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