Zepto Founders Face ED Inquiry Amid IPO Plans

Enforcement Directorate Summons Zepto Founders

In April 2026, the founders of Zepto were called in by the Enforcement Directorate (ED) concerning the Foreign Exchange Management Act (FEMA), as disclosed in their revised draft red herring prospectus (DRHP). Aadit Palicha and Kaivalya Vohra, the co-founders, were asked to submit various documents related to foreign investments, audited financial statements for the fiscal year 2020-21, shareholding structures, loan details, income tax returns, and bank account information, as stated in the UDRHP.

Vohra attended the ED hearings on April 17 and April 22, while Palicha was present on April 20 and May 15. According to Zepto, they have complied with the ED's requests for information and documentation, including details about their holding structure, business agreements, and invoices.

Zepto has indicated that they have not received any further communication from the ED and expressed confidence that there will be no additional inquiries or potential legal actions stemming from this matter.

Zepto's Ambitious IPO Plans

Zepto has submitted its draft documents to the Securities and Exchange Board of India (SEBI) with plans to raise ₹8,010 crore through an initial public offering (IPO). This offering includes a fresh issue of equity shares valued at ₹8,010 crore, alongside an offer for sale (OFS) from existing investors, as detailed in the UDRHP. The OFS will consist of up to 113,466,566 equity shares with a face value of ₹5 each.

With this IPO, Zepto is set to become the first quick commerce-only company to launch an IPO, which is anticipated to reach approximately ₹10,000 crore. Their updated DRHP filed with SEBI outlines plans for a $1 billion (around ₹9,500 crore) initial public offering.