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

Fast commerce platform Zepto revealed in its updated draft pink herring prospectus (DRHP) on Monday that the Enforcement Directorate (ED) had summoned its founders Aadit Palicha and Kaivalya Vohra in relation to the Overseas Trade Administration Act (FEMA) in April 2026.

In its updated DRHP filed with SEBI for a $1 billion (Rs 9,500 crore) preliminary public providing, Zepto stated that Palicha and Vohra had been required to provide some paperwork with regard to overseas investments, audited steadiness sheets for the monetary yr 2020-21, shareholding patterns, particulars on loans and ensures, earnings tax returns and financial institution accounts, together with different info.

Complying with the summons, Vohra appeared earlier than the ED on April 17 and April 22. Palicha appeared earlier than the authority on April 20 and Might 15 this yr. “As on the date of this Updated Draft Purple Herring Prospectus – I, they’ve offered related info and paperwork as requested by ED pursuant to the Summons, in addition to follow-on info requested by the ED additional to their interactions, together with sure particulars in relation to our holding construction, the Scheme, and extra info in relation to our enterprise akin to enterprise agreements and invoices,” Zepto stated.

The fast commerce firm stated it has not but obtained any additional communication from ED. It assured that there is not going to be future inquiries or that these may escalate to investigations, authorized proceedings or any attainable penalties.

Zepto IPO

The much-awaited IPO of Zepto will comprise a recent concern of shares value Rs 8,010 crore and an offer-for-sale (OFS) of practically 11.35 crore shares by current shareholders, in line with the updated prospectus. The five-year-old firm had filed its IPO papers confidentially with market regulator SEBI again in December 2025 and obtained the regulator’s approval in Might this yr.

Zepto is aiming to debut on inventory markets in July, individuals accustomed to the matter instructed The Financial Instances. This could make the agency the third fast commerce participant on Dalal Road, together with Blinkit father or mother Everlasting and Instamart father or mother Swiggy.

Additionally Learn | Zepto information updated papers for Rs 9,500 crore IPO; goals July itemizing

Zepto earnings snapshot

Zepto reported a 75% year-on-year (YoY) leap in consolidated income for the fourth quarter of FY26 to Rs 7,498 crore, in line with its updated DRHP. The Bengaluru-based firm additionally narrowed its web loss to Rs 1,539 crore throughout the January-March quarter from Rs 1,832 crore a yr earlier, the submitting confirmed.

Zepto processed 210 million orders throughout the quarter, i.e. over 2 million orders a day. It ended March 2026 with 1,139 darkish shops, up from 1,029 a yr earlier. Orders per retailer per day rose to 2,140 from 1,425 in the year-ago interval, indicating larger throughput throughout its community.

Additionally Learn | Zepto This fall income up 75% at Rs 7,498 crore, narrows loss to Rs 1,538 crore

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