As Zepto inches closer to marking its D-Street debut, its draft initial public offering (IPO) papers show that the quick commerce (qcom) firm’s founders, Aadit Palicha and Kaivalya Vohra, received summons from the Enforcement Directorate (ED).
The summons, each dated April 8, 2026, required the founders to appear before the agency and furnish documents under proceedings initiated under the Foreign Exchange Management Act (FEMA), 1999.
The agency also sought information related to the firm’s business operations, foreign investments and financial records.
While Vohra appeared before the ED on April 17 and April 22, Palicha appeared on April 20 and May 15, according to the updated draft red herring prospectus, filed late on Monday night.
Overall, the ED sought details including foreign and overseas investments, audited financial statements since FY21, shareholding patterns, loans and guarantees, income-tax returns, bank account details, immovable properties, and a note on the company’s business model.
The company said the founders have submitted the requested information and documents, along with additional details sought by the agency regarding the group’s holding structure, corporate scheme, business agreements and invoices.
“As on the date of this Updated Draft Red Herring Prospectus-I, we have not received any further communication from the ED since submitting our response,” the company said.
However, Zepto cautioned that it cannot assure investors that there will be no future inquiries or that the matter will not escalate into investigations, legal proceedings or penalties.
The company also pointed to regulatory uncertainty around foreign investment and e-commerce marketplace rules as a business risk.
It said changes in the interpretation or implementation of foreign direct investment (FDI) regulations, including those governing e-commerce marketplaces under FEMA, could require additional approvals and increase compliance costs.
Zepto added that any future amendments to these rules, or adverse regulatory proceedings, could affect its operations, growth plans, financial performance and business prospects.
The Bengaluru-headquartered company had filed its draft papers in December last year through the confidential route and received the market regulator’s approval in May this year. Its IPO size is expected to be around ₹10,000 crore.