ED summoned Zepto founders in April under Fema ahead of IPO, UDRHP reveals
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Zepto founders were summoned by the Enforcement Directorate in April 2026 under FEMA (Foreign Exchange Management Act), the quick commerce platform revealed in its Updated Draft Red Herring Prospectus (UDRHP) filed with the Securities and Exchange Board of India (Sebi) on Monday. This comes as the qcom platform expects to make its market debut in the next few months.
The UDRHP revealed that in the summons dated April 8, 2026, the ED asked Zepto’s founders Aadit Palicha and Kaivalya Vohra to provide information related to foreign and overseas investments, audited financial statements since FY21, shareholding patterns, loans and guarantees, income tax returns, bank accounts, and details of the company’s business model.
Palicha and Vohra appeared before the ED on multiple occasions in April and May and submitted the information and documents sought by the agency, the filing stated.
Zepto said the founders provided the information and documents sought by the ED, including follow-up details requested after their interactions with the agency. These included information related to Zepto’s holding structure, business agreements, and invoices, according to the filing.
The updated filing disclosed the ED summons under the “Risk Factors” and “Litigation involving promoters” sections of the UDRHP. It further stated that Vohra appeared before the ED on April 17 and April 22, while Palicha appeared on April 20 and May 15.
First quick commerce company set for stock market debut
Sebi had formally approved Zepto’s IPO plans in May. The company’s public issue is expected to be around ₹10,000 crore, which would make it the first quick commerce company to go public in India.
The proposed IPO comprises a fresh issue of equity shares worth ₹8,010 crore and an offer for sale (OFS) of shares by existing investors. The OFS component includes up to 113,466,566 equity shares of face value ₹5 each.
Zepto will use the fresh issue proceeds from its IPO to bolster its growth and expansion plans. It plans to invest in the expansion of its dark store network through the setting up of new dark stores in existing and new geographies, lease rentals for existing dark stores, and technology and cloud infrastructure.
The company also plans to invest in its subsidiary, Zepto Marketplace Private Limited, for marketing and business promotion expenses to enhance brand awareness and visibility.
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