Ed Eyes Zepto Ahead Of Ipo Questioning Founders Adit Palicha And Kaivalya Vohra Over Foreign Investment

Quick-commerce major Zepto has revealed in its updated draft red herring prospectus (DRHP) that the company’s founders Adit Palicha and Kaivalya Vohra were summoned for questioning by the Enforcement Directorate (ED) in April this year. During this time, the company is preparing for its much-awaited initial public offering (IPO) of Rs 8,010 crore.

According to the filing, the ED had issued summons on April 8, 2026, seeking information from the company and its founders regarding foreign and overseas investments, audited financial statements from FY 2021 till now, shareholding pattern, loans and guarantees, income tax returns, details of bank accounts, immovable assets and business model of the company.

Both the founders appeared before ED and handed over the documents.

The DRHP states that Kaivalya Vohra appeared before ED officials on April 17 and April 22, while Adit Palicha answered the agency’s questions on April 20 and May 15. During interrogation, both the founders provided all the documents and information sought by the ED.

Apart from this, additional information related to the company’s holding structure, scheme of arrangement, various business agreements and invoices was also handed over to the agency.

Zepto has clarified in its filing that after submitting the documents, the company or its founders have not received any new notice or communication from the ED. “The company and its founders have not received any additional information in connection with the above subpoena,” the filing said.

However, the company also cautioned potential investors that the possibility of any new questions, investigation, legal action or punitive process related to this matter cannot be completely ruled out in the future.

Investors’ eyes before IPO

Zepto plans to raise Rs 8,010 crore to list on the Indian stock exchange. This amount will be raised by issuing new shares. The company’s IPO is considered to be one of the most talked about technology IPOs of India this year.

This disclosure related to the ED summons is considered important for investors, because any regulatory or investigation related developments can have an impact on the market valuation of the company and investor sentiment.

Income more than doubled in FY26

The updated DRHP also highlights the company’s strong financial performance. Zepto reported revenue from operations of Rs 24,164 crore in the financial year 2025-26 (FY26), more than double compared to Rs 11,109 crore in the previous financial year FY25.

The company’s net loss also declined significantly to Rs 1,248.6 crore, compared to Rs 1,953.7 crore in FY25.

The company’s revenue grew 75 percent year-on-year to Rs 7,498 crore during the quarter ending March 2026. There was also a reduction in adjusted EBITDA loss, which is an indication of improvement in the profitability of the company.

Founded in the year 2021 by Adit Palicha and Kaivalya Vohra, Zepto has achieved a dominant position in the Indian quick-commerce market in a short span of time. The company competes with big players like Blinkit, Swiggy Instamart, Flipkart Minutes and Amazon Now.

The company says that it has fully cooperated with the investigating agency and at present it has not received any additional notice from the ED. Despite this, this disclosure before the IPO remains a topic of discussion among investors and market analysts.

Also read:

India concludes Ulaanbaatar Open with 8 gold and 9 bronze medals!

“Be careful, you will be left alone!” Trump warns Netanyahu again

Violent clashes before agitation in PoK, 11 dead