Zepto, the fast-growing quick commerce startup, is preparing for a landmark IPO worth around ₹10,000 crore, which will make it the first quick commerce company in India to list publicly. However, ahead of this milestone, its founders Aadit Palicha and Kaivalya Vohra were summoned by the Enforcement Directorate (ED) under the Foreign Exchange Management Act (FEMA) in April 2026.
According to Zepto’s Updated Draft Red Herring Prospectus (UDRHP) filed with SEBI, the ED sought details on foreign investments, audited financials since FY21, shareholding patterns, loans, guarantees, tax returns, bank accounts, and the company’s business model. Both founders appeared before the ED multiple times in April and May, submitting requested documents and clarifications, including information on Zepto’s holding structure, agreements, and invoices.
The disclosure was made under the “Risk Factors” and “Litigation involving promoters” sections of the IPO filing, highlighting regulatory scrutiny as a potential risk. Despite this, SEBI approved Zepto’s IPO plans in May.
The IPO will include a fresh issue of ₹8,010 crore and an offer for sale (OFS) of over 113 million shares by existing investors. Funds raised will be used to expand Zepto’s dark store network, strengthen technology infrastructure, and boost marketing through its subsidiary Zepto Marketplace.
This IPO marks a turning point for India’s startup ecosystem, as Zepto aims to balance rapid growth with regulatory compliance while stepping into the public market.
