ED summoned Zepto founders under FEMA ahead of IPO: Here’s what the updated DRHP reveals

Synopsis

Quick commerce platform Zepto disclosed that its founders, Aadit Palicha and Kaivalya Vohra, were summoned by the Enforcement Directorate (ED) in April 2026 concerning FEMA. The founders provided requested documents related to foreign investments and business operations. Zepto is proceeding with its $1 billion IPO, aiming for a July listing.

Quick commerce platform Zepto revealed in its updated draft red herring prospectus (DRHP) on Monday that the Enforcement Directorate (ED) had summoned its founders Aadit Palicha and Kaivalya Vohra in relation to the Foreign Exchange Management Act (FEMA) in April 2026.

In its updated DRHP filed with SEBI for a $1 billion (Rs 9,500 crore) initial public offering, Zepto said that Palicha and Vohra were required to produce some documents with regard to foreign investments, audited balance sheets for the financial year 2020-21, shareholding patterns, details on loans and guarantees, income tax returns and bank accounts, along with other information.

Complying with the summons, Vohra appeared before the ED on April 17 and April 22. Palicha appeared before the authority on April 20 and May 15 this year. "As on the date of this Updated Draft Red Herring Prospectus – I, they have provided relevant information and documents as requested by ED pursuant to the Summons, as well as follow-on information requested by the ED further to their interactions, including certain details in relation to our holding structure, the Scheme, and additional information in relation to our business such as business agreements and invoices," Zepto said.

The quick commerce company said it has not yet received any further communication from ED. It assured that there will not be future inquiries or that these could escalate to investigations, legal proceedings or any possible penalties.

Zepto IPO

Zepto is aiming to debut on stock markets in July, people familiar with the matter told The Economic Times. This would make the firm the third quick commerce player on Dalal Street, along with Blinkit parent Eternal and Instamart parent Swiggy.

Also Read | Zepto files updated papers for Rs 9,500 crore IPO; aims July listing

Zepto earnings snapshot

Zepto processed 210 million orders during the quarter, i.e. over 2 million orders a day. It ended March 2026 with 1,139 dark stores, up from 1,029 a year earlier. Orders per store per day rose to 2,140 from 1,425 in the year-ago period, indicating higher throughput across its network.

Also Read | Zepto Q4 revenue up 75% at Rs 7,498 crore, narrows loss to Rs 1,538 crore

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