Quick-commerce platform Zepto on Friday, 5 June 2025 stated that it has fully cooperated with the Enforcement Directorate (ED) and furnished all information sought by the agency in connection with its investigation into the alleged promotion of offshore betting platform Parimatch in India. The company categorically denied having any direct relationship with the advertiser under scrutiny.

What Zepto Said

'Zepto has fully cooperated with the Enforcement Directorate and shared all information available to the company,' a company spokesperson said in an official statement. The firm maintained that the matter concerns a single advertisement placed in March 2025 through a third-party media agency arrangement for a merchandise entity — not through any direct engagement by Zepto itself.

'Zepto did not directly onboard, contract with, or manage the advertiser in question, and had no involvement in any betting, gaming, payments, user acquisition, or operational activity linked to the entity under investigation,' the spokesperson added.

The Third-Party Agency Arrangement

According to Zepto, the advertisement in question was managed entirely by an external media agency. The company said it also connected the ED's investigating team with the concerned agency to facilitate any further inquiry. 'Any suggestion that Zepto had an operational role in the matter is incorrect,' the statement noted.

Zepto also appealed to media outlets to report the facts accurately, urging platforms to 'avoid speculations which lead to inaccurate association of the company with activities it had no part in.'

Scope of the ED Investigation

The clarification follows media reports indicating that the ED had sought information from Zepto as part of a broader probe into Parimatch and its promotional activities in India. According to those reports, investigators are examining advertisements and marketing campaigns allegedly linked to Parimatch, along with the channels through which such promotional content may have reached Indian consumers.

The probe is also reportedly reviewing advertiser verification processes and the nature of any engagements between digital platforms and entities connected to the case. Notably, Parimatch is an offshore betting platform, the operation of which in India raises questions under the country's foreign exchange and online gambling regulations.

Broader Context

This is not the first time Indian digital and quick-commerce platforms have come under regulatory scrutiny over third-party advertising arrangements. The ED's expanding focus on offshore betting platforms reflects a broader enforcement push against illegal gambling promotion, which has intensified over the past two years. The case underscores the compliance risks that arise when digital platforms rely on intermediary agencies for ad placement without robust verification of the underlying advertiser.

As the investigation continues, the extent of the ED's findings against other parties in the advertising chain is expected to become clearer in the weeks ahead.