Quick Commerce Startup Says It Fully Cooperated With Authorities and Had No Direct Role in Advertiser Activities
Quick commerce platform Zepto has clarified its position regarding an Enforcement Directorate (ED) investigation linked to offshore betting platform Parimatch, following reports that the agency had sought information from the company as part of its ongoing probe. The startup stated that it has fully cooperated with investigators and shared all information available to it regarding the matter.
The development comes as Indian enforcement agencies continue to tighten scrutiny of offshore betting and gaming platforms that allegedly target Indian consumers through digital channels. While Zepto’s name surfaced in connection with the investigation, the company has maintained that its involvement was limited and indirect.
Advertisement Linked to Third-Party Arrangement
According to Zepto, the issue relates to an advertisement campaign that ran in March 2025 through a third-party media and vendor arrangement associated with a merchandise entity. The company emphasized that it was not directly responsible for onboarding or managing the advertiser involved in the campaign.
A company spokesperson stated that Zepto “did not directly onboard, contract with, or manage the advertiser in question” and had no involvement in betting, gaming, payments, user acquisition, or operational activities connected to the entity under investigation.
The startup further explained that once approached by authorities, it provided all relevant information available within its records and facilitated communication between investigating officials and the concerned vendor responsible for the campaign.
Company Rejects Operational Involvement
Zepto has categorically denied any operational association with Parimatch or related activities being examined by enforcement agencies. According to the company, the advertising campaign was managed externally, and its role was limited to providing advertising inventory through established commercial arrangements.
The clarification appears aimed at addressing concerns arising from reports that linked the company to the broader investigation. Zepto reiterated that it neither participated in nor benefited from any betting or gaming operations associated with the advertiser.
The company maintains that there was no direct contractual relationship with the entity being investigated.
ED Examining Promotional Activities
Media reports indicate that the Enforcement Directorate is examining promotional and marketing activities linked to Parimatch, including how advertisements may have reached Indian consumers across various digital platforms.
Authorities are also reportedly reviewing advertiser verification procedures and the extent of engagement between digital platforms and advertisers. The investigation forms part of a wider regulatory effort to understand how offshore betting operators establish visibility and acquire users within India despite increasing restrictions.
Growing Compliance Focus Across Digital Platforms
The case highlights the growing compliance responsibilities facing internet companies, marketplaces, and advertising platforms. As regulators intensify oversight of online advertising ecosystems, companies are increasingly expected to strengthen advertiser due diligence and verification processes.
For startups operating large consumer platforms, maintaining robust compliance frameworks has become critical as regulatory expectations continue to evolve alongside India’s rapidly expanding digital economy.