Zepto founders received ED summons under FEMA, says updated IPO document

Zepto co-founders Aadit Palicha and Kaivalya Vohra were summoned by the Enforcement Directorate under FEMA in April 2026 over foreign investments and financial disclosures. The company complied with requests as it prepares for its ₹8,010 crore IPO filing with SEBI

New Delhi: Zepto co-founders Aadit Palicha and Kaivalya Vohra received summons from Enforcement Directorate (ED) in April this year, seeking information and documents related to foreign investments, financials, and the company’s business, in connection with proceedings under the Foreign Exchange Management Act (FEMA), the IPO-bound quick commerce firm has disclosed in its updated Draft Red Herring Prospectus (UDRHP).

The disclosure appears in the section on risk factors of the latest document.

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According to the updated DRHP, the ED sought details including foreign and overseas investments, audited financial statements, shareholding patterns, information on loans and guarantees, income tax returns, bank accounts, immovable properties, and a note on Zepto’s business model. The summons, dated April 8, 2026, required the founders to appear before the ED to furnish relevant documents and information.

“Two of our promoters, namely, Aadit Palicha and Kaivalya Vohra had received summons, each dated April 8, 2026, from the Directorate of Enforcement, Ministry of Finance, Government of India, requiring them to appear before the ED, to produce certain documents and/or provide information in relation to our company and/or themselves…,” it said.

Information sought pertained to “details of foreign investments and overseas investments; audited balance sheets since Financial Year 2020-2021; owned immovable properties; shareholding pattern; details of loans/guarantees; income tax returns and bank accounts; note on our business model, in relation to proceedings under the Foreign Exchange Management Act, 1999”.

Zepto further said that complying with the summons, Vohra appeared before the ED on April 17, 2026 and April 22, 2026, and Palicha on April 20, 2026 and May 15, 2026, respectively.

“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,” it said.

Zepto’s draft IPO document said that as on the date of the updated Draft Red Herring Prospectus, it has not received any further communication from the ED after submission of the responses, but added, “we cannot assure you there will not be future inquiries or that these could escalate to investigations, legal proceedings or any possible penalties”.

Zepto on Monday filed updated draft papers with markets regulator Sebi to raise Rs 8,010 crore through a fresh issue of shares as part of its proposed Initial Public Offering (IPO).

Along with the fresh issue, there will be an Offer For Sale (OFS) of 11.35 crore equity shares by existing shareholders, according to the Updated Draft Red Herring Prospectus (UDRHP).