Zepto flags losses, ED summons as risks in IPO filing

Quick commerce unicorn Zepto has identified a history of significant operating losses, recent summons from the Enforcement Directorate to its promoters, and intensified regulatory scrutiny over consumer protection as primary risk factors for its upcoming initial public offering (IPO).

In its updated Draft Red Herring Prospectus filed on Monday, the Bengaluru-headquartered firm disclosed that it has incurred losses in every fiscal year since its inception in July 2021, and warned that it may continue to face negative cash flows as it expands its operations.