When it comes to online grocery delivery, names like Swiggy Instamart, BlinkIt, Zepto, and BigBasket likely come to mind. However, Zepto, co-founded by 22-year-old Aadit Palicha, is now facing some major issues. Recent reports highlight concerns about a toxic work culture and employee burnout, leading some to wonder: Is Zepto the Byju’s of 2024?
Employee alleges massive cases of fraud at Zepto
In a viral Reddit post, a current Zepto employee shares a damning account of the company’s toxic work culture.
“I’ve been working with Zepto for a year now. It is the most toxic work culture. Only we know how bad things are,” they write.
The post details how CEO Aadit Palicha starts work at 2 p.m., causing late-night meetings at 2 a.m. and a late 12 p.m. start for employees. Despite HR’s efforts to encourage earlier starts with free breakfast, many work until 11 p.m. daily.
The company’s reliance on younger employees, who work 14-hour days, is also highlighted, as senior staff avoid the culture. “A lot of youngsters are hired because senior people don’t want to work in such a culture,” the employee claims.
The post also points to unethical practices: “There are lot of dark patterns in the app to extract money from customers in multiple ways including charging more for customers with phones more than 30,000 inr.”
The individual makes allegations of fraud, fake PR, copying design from BlinkIt and frequent employee turnover.
The employee claims layoffs are expected in March and that only the hope of an IPO in two years is keeping some staff around.
Is Zepto the next Byju’s?
Bengaluru-based software engineer Ramit Kundu took to LinkedIn to share his thoughts on why Zepto might follow in the footsteps of Byju’s.
He points out that while Zepto has raised three rounds of funding and aggressively expanded its team, there’s a concerning detail: “According to a report Zepto founders own very less equity in the company and majority is tied up in their family offices in Dubai. This could hint as safeguard for a potential liquidity event.”
Kundu warns that these financial strategies, combined with internal challenges, might steer Zepto down a path similar to Byju’s, which, despite early success, faced significant hurdles.
With toxic work cultures and employee burnout gaining attention, especially after the tragic death of a young EY worker earlier this year, Kundu stresses the importance of work culture.
“As a techie I personally believe its always better to prioritize work culture and stability over hikes . Companies that offer standard salaries but have a focus on profitability and sustainability should always be prioritized,” he writes.
