Zepto's founders Aadit Palicha and Kaivalya Vohra have received summons from the Directorate of Enforcement seeking information, according to the company's updated draft red herring prospectus filed ahead of its proposed initial public offering.
The company said Palicha and Vohra, who are key managerial personnel, had received summons from the Directorate of Enforcement under the Ministry of Finance. The filing did not provide further details on the matter.
Further, as it prepares for its stock market debut, Zepto also said it plans to use part of the proceeds from the fresh issue to open about 1,904 dark stores.
The company said it had expanded its dark store network from 337 stores across 11 cities as of March 31, 2024, to 1,139 stores across 66 cities as of March 31, 2026.
Under its strategy section, Zepto said it plans to continue a densification approach in the country's top 50 cities.
According to the filing, Zepto plans to spend up to Rs 16.29 billion on capital expenditure related to the expansion of its dark store network.
"As per the Redseer Report, quick commerce operations are primarily concentrated in high-density urban areas, with expansion into smaller towns and cities with lower population density becoming challenging as these areas are structurally different from the markets in which quick commerce works," it said.
The company said the top 50 cities remained the core addressable market for quick commerce and continued to be underpenetrated.
"We plan to continue pursuing this densification strategy in these top 50 cities," it said.
The filing also outlined food safety and regulatory matters involving the company.
It said the food safety officer in Ghaziabad had filed two cases involving allegations of misbranding a packet of jaggery and a packet of puffed fox nut. The Additional District Magistrate in Ghaziabad imposed penalties of Rs 1 lakh on the company and one of its managers and Rs 1.5 lakh on the manufacturer through orders dated April 30, 2024. The matters are pending.
Separately, the Food Safety Officer of the Food and Drug Administration in Maharashtra filed an adjudication application relating to one of the company's establishments in Lohegaon, Pune.
The filing said an application had also been filed against the company and Vinay Dhanani, president for supply chain and category, in connection with one of its establishments in Mumbai.
Zepto also referred to an incident in June 2024 in which a user allegedly found a foreign object in a pre-packaged tub of ice cream ordered through the platform.
"While all the products from the particular brand were recalled and it did not have a material adverse impact on our operations, we may face such instances again in the future," the company said.
The company said concerns relating to hygiene, health and quality were among the risks associated with its Zepto Cafe business.