2 Zepto Founders Summoned By ED As Company Moves Ahead With Rs 8,010 Crore IPO

Quick-commerce company Zepto has revealed that its co-founders, Aadit Palicha and Kaivalya Vohra, received summons from the Enforcement Directorate (ED) earlier this year in connection with proceedings under the Foreign Exchange Management Act (FEMA).

The disclosure was made in the company's updated Draft Red Herring Prospectus (UDRHP) filed with market regulator SEBI as Zepto prepares for its much-anticipated Initial Public Offering (IPO).

The information has been included under the risk factors section of the filing, a standard requirement for companies planning to go public.

What Information Did The ED Seek?

According to the updated draft prospectus, the ED issued summons to both founders on April 8, 2026, asking them to appear before the agency and provide various documents and information related to the company and their personal financial dealings.

The agency reportedly sought details regarding foreign investments and overseas investments, audited financial statements since the financial year 2020-21, shareholding patterns, bank account details, income tax returns, loans and guarantees, and information about immovable properties.

The ED also requested a detailed note explaining Zepto's business model.

The inquiries were part of proceedings being conducted under FEMA, which regulates foreign exchange transactions in India.

Founders Appeared Before The ED

Zepto stated that both founders complied with the summons and appeared before the Enforcement Directorate on multiple occasions.

Kaivalya Vohra reportedly appeared before the agency on April 17 and April 22, while Aadit Palicha appeared on April 20 and again on May 15.

The company said that the founders submitted all requested information and documents and also responded to follow-up queries raised by the investigating agency.

Additional Information Shared With Authorities

According to the filing, Zepto provided additional details regarding its holding structure, corporate arrangements, business agreements, invoices, and operational framework.
The company stated that it cooperated fully with the authorities and supplied all information requested during the interactions.

As of the date of the updated filing, Zepto said it had not received any further communication from the Enforcement Directorate following the submission of responses.

No Further Communication Yet, But Uncertainty Remains

While the company noted that there has been no additional correspondence from the ED so far, it also acknowledged that future developments cannot be ruled out.

In its filing, Zepto cautioned investors that there is no assurance the matter will not lead to further inquiries, investigations, legal proceedings, or potential penalties in the future.
Such disclosures are commonly included in IPO documents to inform prospective investors about any regulatory or legal matters that could potentially affect the business.

Zepto Moves Ahead With IPO Plans

Despite the regulatory disclosure, Zepto has continued its preparations for a stock market listing.

On Monday, the company submitted updated draft papers to SEBI seeking to raise ₹8,010 crore through a fresh issue of shares.

The proposed public issue will also include an Offer For Sale (OFS) component involving 11.35 crore equity shares being sold by existing shareholders.

The IPO is expected to be one of the most closely watched listings in India's fast-growing quick-commerce sector.

A Key Moment For India's Quick-Commerce Industry

Founded by Aadit Palicha and Kaivalya Vohra, Zepto has emerged as one of India's leading quick-commerce platforms, competing with major players in the online grocery and instant delivery space.

The company's public offering is seen as a significant milestone not only for Zepto but also for the broader quick-commerce industry, which has witnessed rapid growth in recent years.

As investors closely examine the company's financial and regulatory disclosures, attention will remain focused on both the progress of the IPO and any future developments related to the FEMA proceedings.

For now, Zepto maintains that it has complied with all requests made by the Enforcement Directorate and has not received any further communication from the agency.