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

Published 9 June 2026 · finance

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

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 IPOThe much-awaited IPO of Zepto will comprise a fresh issue of shares worth Rs 8,010 crore and an offer-for-sale (OFS) of nearly 11.35 crore shares by existing shareholders, according to the updated prospectus.

The five-year-old company had filed its IPO papers confidentially with market regulator SEBI back in December 2025 and received the regulator's approval in May this year.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 listingZepto earnings snapshotZepto reported a 75% year-on-year (YoY) jump in consolidated revenue for the fourth quarter of FY26 to Rs 7,498 crore, according to its updated DRHP. The Bengaluru-based company also narrowed its net loss to Rs 1,539 crore during the January-March quarter from Rs 1,832 crore a year earlier, the filing showed.Zepto processed 210 million orders during the quarter, i.e. over 2 million orders a day.