Technology

IIE DIGITAL DESK :  Recent interview, Zepto CEO Aadit Palicha opened up about the challenges his startup faced during the Silicon Valley Bank (SVB) crisis. He described the situation as a close call, stating, "We almost died." Palicha acknowledged that the company made significant mistakes during this period, which nearly jeopardized its operations.​The SVB crisis posed a severe threat to many startups, including Zepto, which relies on venture capital funding. The sudden collapse of SVB created a liquidity crunch, leaving startups scrambling to secure alternative funding sources. Zepto, known for its rapid grocery delivery service, was not immune to these challenges.​ Palicha emphasized that one of the critical mistakes Zepto made was not diversifying its banking relationships earlier. The company's reliance on a single banking partner left it vulnerable when SVB faced its downfall. This oversight highlighted the importance of having multiple financial partners to mitigate risks associated with such crises.​ 

Despite these setbacks, Zepto managed to navigate through the crisis and continue its operations. The experience served as a valuable lesson for Palicha and his team, underscoring the necessity of financial diversification and preparedness in the face of unforeseen challenges. Looking forward, Palicha expressed confidence in Zepto's resilience and its ability to adapt to changing circumstances. He remains committed to the company's mission of providing quick and reliable grocery delivery services to customers across India.​