India’s quick commerce race has largely been a story about speed. Faster deliveries, faster expansion and faster revenue growth have defined the sector’s rise. Zepto has been one of the biggest beneficiaries of that boom.
But as the company prepares for one of the country’s most closely watched startup listings, another development has entered the picture.
In its updated draft prospectus, Zepto disclosed that co-founders Aadit Palicha and Kaivalya Vohra had received summons from the Enforcement Directorate under the Foreign Exchange Management Act (FEMA).
The disclosure came alongside fresh financial figures showing that the company more than doubled its revenue in FY26, even as losses widened. For investors, both developments are now part of the same story.
Revenue More Than Doubled
According to Zepto’s updated draft red herring prospectus (UDRHP), the company reported revenue of ₹22,624 crore for the financial year ended March 31, 2026, more than twice the level recorded in FY25.
At the same time, losses widened to ₹5,905 crore as the company continued to spend heavily on expansion and customer acquisition. The updated filing also showed that Zepto plans to raise ₹8,010 crore through a fresh issue of shares. Existing shareholders are expected to sell up to 113.5 million shares through an offer for sale.
Reports by Reuters and Moneycontrol suggest the overall issue size could be between ₹9,000 crore and ₹10,000 crore.
The numbers underline the economics of India’s highly competitive quick commerce market, where companies are prioritising scale and network expansion.
Details Of ED Summons
One of the key disclosures in the updated filing relates to correspondence with the Enforcement Directorate.
According to the prospectus, the ED issued summons to founders Aadit Palicha and Kaivalya Vohra on April 8, 2026, under the provisions of FEMA.
Business Standard reported that the agency sought information relating to overseas investments, audited financial statements from FY21 onwards, tax returns, shareholding details, loans and guarantees, bank accounts and aspects of the company’s business model.
The founders appeared before the agency on multiple occasions during April and May and submitted documents sought by investigators, according to the disclosures cited by Business Standard.
Reuters reported that Zepto stated it had not received any further communication from the ED as of the updated filing.
The company disclosed the matter under sections relating to risk factors and litigation involving promoters, as required in public offering documents.
Importantly, the disclosure itself does not indicate any finding of wrongdoing, and no enforcement action against the company or its founders has been disclosed in the filing.
IPO Comes At Key Time
The timing of the disclosure is significant because Zepto is moving ahead with plans to enter public markets.
Investor sentiment toward India’s new-age technology companies has improved in recent years as several listed internet businesses have moved closer to profitability and gained wider acceptance among institutional investors. That backdrop has encouraged a new crop of startups to explore public listings.
Zepto’s proposed IPO is expected to be among the largest offerings by an Indian startup in recent years.
For public market investors, prospectus disclosures are an important part of evaluating risk. Such documents are designed to provide information that could be material to investment decisions.
The inclusion of the ED summons means that the matter becomes part of the information available to potential investors, alongside the company’s financial performance, competitive position and growth plans.
At present, there is no indication in the filing that the summons have affected Zepto’s listing plans.
Competition Remains Intense
The company’s IPO ambitions also come at a time when competition in quick commerce remains fierce.
Zepto faces rivals including Blinkit, Swiggy Instamart, BigBasket and Amazon, all of which have been investing heavily to strengthen their presence in the sector.
Across the industry, companies have prioritised rapid expansion through dark stores and logistics networks. That strategy has helped drive growth but has also resulted in continued losses for several players.
Against that backdrop, Zepto’s FY26 numbers highlight both the scale it has achieved and the cost associated with that growth.
Growth And Governance
The updated filing presents two parallel narratives.
On one hand, Zepto has emerged as one of India’s fastest-growing consumer internet companies, with revenue crossing ₹22,000 crore in FY26.
On the other hand, the company has disclosed ongoing correspondence with the Enforcement Directorate and losses of nearly ₹6,000 crore.
Neither development alone determines the success of the proposed IPO. Public investors typically assess companies on a range of factors, including financial performance, competitive positioning, governance and regulatory disclosures.
As Zepto moves closer to its market debut, those considerations are likely to shape how investors evaluate one of India’s most prominent startup stories.
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