Toxic Work Culture & Fraud Allegations at Zepto Raise Concerns of Becoming Next Byju’s
In the fast-paced world of online grocery delivery, names like Swiggy Instamart, BlinkIt, Zepto, and BigBasket dominate the landscape. However, one of these players, Zepto, co-founded by the young entrepreneur Aadit Palicha, finds itself at the center of controversy. Reports have surfaced, shedding light on troubling issues within the company, specifically regarding a toxic work culture and allegations of fraud. This has sparked concerns among industry insiders and employees alike, prompting the question: Is Zepto poised to become the next Byju’s?
Employee Alleges Massive Cases of Fraud at Zepto
A recent viral Reddit post has brought to light the dark underbelly of Zepto’s work environment. An anonymous employee shared a harrowing firsthand account of the toxic culture prevalent within the company. Describing it as “the most toxic work culture,” the employee detailed CEO Aadit Palicha’s unconventional work hours that lead to late-night meetings and extended workdays for staff. Despite efforts by HR to incentivize earlier starts with free breakfast, many employees find themselves working late into the night, with some even clocking out at 11 p.m. on a daily basis.
The post also highlighted the overreliance on young employees, who are expected to put in grueling 14-hour workdays, while senior staff members shun the oppressive work environment. Furthermore, allegations of unethical practices, including the use of dark patterns in the app to extract money from customers, have surfaced. The employee also raised concerns about fraud, fake PR tactics, design plagiarism from competitors, and a high turnover rate within the company.
Is Zepto the Next Byju’s?
In light of these revelations, Bengaluru-based software engineer Ramit Kundu took to LinkedIn to share his insights on the potential trajectory of Zepto. Despite the company’s successful fundraising efforts and rapid team expansion, Kundu pointed out a troubling detail: the founders of Zepto reportedly hold minimal equity in the company, with the majority tied up in family offices in Dubai. This financial structure raises concerns about a potential liquidity event, hinting at a precarious future for Zepto.
Kundu cautioned that the combination of financial vulnerabilities and internal challenges could propel Zepto down a path akin to Byju’s, a once-promising company that encountered significant obstacles despite initial success. With a spotlight on toxic work cultures and employee burnout following recent tragic events in the tech industry, Kundu emphasized the critical importance of fostering a healthy work environment. Prioritizing work culture and stability over financial gains, he argued, should be the guiding principle for tech companies aiming for long-term success.
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