Fast Groceries from Filthy Warehouses, Moneyview Preps For IPO, and Meesho’s Bonus Shares

We’ve always believed that when you buy food online - whether it’s from a quick-commerce app or a large e-grocery platform, it should come with some level of trust. You simply want to be sure your food won't make you ill. However, in India's booming instant delivery market, that trust is weakening.

Recently, Zepto’s warehouse in Dharavi, Mumbai, had its food license suspended. Why? Expired goods, fungal growth on products, non-functioning cold storage units, etc. The pictures that surfaced online were disturbing. As regular users of Zepto, it was genuinely unsettling to think that the bread or dairy we ordered could’ve come from a place like that.

This isn’t a one-off.

Last year, Blinkit’s warehouse in Telangana was flagged for similar issues - expired stock, poor hygiene, and improper storage. Around the same time, Walko Foods had to stop ice cream production after a human finger was found in a Yummo tub ordered via Zepto. And let’s not forget the raids on Amazon and Flipkart warehouses in early 2025 for storing uncertified products. That’s just in the last two years.

When we order food, our first thought is often to blame the app if something goes wrong. That's a fair reaction, but let's look closer at why:

• The startup owns the customer relationship. It’s their brand on the app.

• The warehouse is often outsourced to third-party operators.

• But food safety laws make both equally responsible.

Even if Zepto blames the vendor, it's not a good enough excuse. They’ve put their name on the service, and they must take the blame when something goes wrong.

Why does this keep happening in India? It’s the usual suspects:

• Weak law enforcement. Most checks happen only after something goes wrong.

• Red tapism. Layers of bureaucracy slow everything down.

• Bribery. Sometimes, paying people off is easier and cheaper than actually solving a problem..

• Lack of real fear. Many startups don’t really think anything bad will happen if they mess up.

Food licenses being suspended isn’t the same as a startup being shut down. Often, the license gets reinstated quietly a few months later. Maybe with a fine, or maybe not.

When companies don't follow the rules, a few things happen. Consumers begin to lose trust, often becoming more careful about what they buy. Startups face negative media attention, but this usually doesn't cause lasting harm. Meanwhile, authorities can demonstrate that they've addressed the issue, even if the penalties are minor.

In 2023–24 alone, the Food Safety and Standards Authority of India (FSSAI) revoked 502 food licenses. Over 21,000 complaints were filed against online food delivery platforms in just the last five years. That’s not small.

Do startups have any internal checks? Some do. They say they conduct regular audits. They talk about SOPs for hygiene. But clearly, something is not right. Either the rules are too weak, or they’re not enforced consistently.

Most warehouse partners are judged on delivery speed and fulfillment rates. Hygiene often becomes a “tick-the-box” formality. Things like staff training, cold chain audits, and pest control logs are practically never brought up in investor reports.

Will the recent noise around this topic make any difference in the long run? Unfortunately, we don’t think so.

As long as quick-commerce keeps growing, the pressure to deliver faster will outweigh the pressure to deliver safely. A few licenses might get suspended. But the same facility might be operational again within weeks.

As consumers, it’s easy to feel helpless. Most users just assume all warehouses are dirty. That nothing will change even if they switch to a different app. But we can do more:

• File complaints. It pushes regulators to act.

• Demand transparency. Ask for food safety ratings.

• Reward brands that show real hygiene audits.

As more people start to care about this, startups will have to care too.

Look at platforms like Amazon Fresh in the US or Ocado in the UK. Food safety is non-negotiable. Warehouses are fitted with IoT monitors. There are third-party audits, and every violation is logged and tracked.

Yes, those countries have better infrastructure. But they also have stricter consumer expectations. In India, we're not strict enough about many things.

Here is our dream food/ grocery delivery startup looks like, even if it costs slightly extra:

1. Publicly list hygiene ratings for each warehouse.

2. Hire a Head of Food Safety first, and then for Operations.

3. Create a real-time dashboard of hygiene violations for internal accountability.

4. Offer discounts to consumers who flag hygiene issues with proof.

Here's something we would really like to see: let the store prove that it’s clean. What if warehouse owners installed CCTV cameras, and users could request access to view them during working hours? Or what if every warehouse had a visible hygiene score updated monthly? The clean ones would stand out right away.

In fact, this could become a competitive advantage. Most quick-commerce customers, like us, are upper-middle class. We care more about things being clean and reliable than just the price. And we would be happy to pay a little more if we knew the food came from a safe, well-maintained warehouse. Price-conscious customers already have their local markets and kirana shops.

Transparency and accountability have to be built into the brand. Not added later as PR.

In the race to deliver groceries in 10 minutes, let’s not forget that food can also harm if not handled right. Startups have a responsibility to their users to not only deliver quickly but also securely. Speed gets you growth. But safety earns you trust.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

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From now on, only authorized devices get airtime, and e-commerce platforms have to play by the book.

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