Zepto’s Licence Suspended Over Poor Hygiene at Mumbai Facility — Here’s What Happened

Quick commerce firm Zepto is facing regulatory heat after the Maharashtra FDA suspended its food business licence for its facility in Dharavi, Mumbai. The move comes in response to serious food safety violations uncovered during an inspection, adding pressure to the startup as it gears up for a public listing.

Kiranakart Technologies, Zepto’s parent company, is now required to achieve full compliance with food safety norms before operations can resume at the facility.

Inspection Uncovers Multiple Hygiene Breaches

The inspection, conducted by Maharashtra’s Food and Drug Administration (FDA), found a series of infractions at Zepto’s Dharavi storage unit. These included:

• Fungal growth on food items

• Cold storage temperatures not maintained as required

• Expired stock not clearly separated from consumables

• Wet, dirty floors and disorganised storage

• Food items placed directly on the ground

• Products stored near clogged and stagnant water

The FDA stated these findings amounted to a breach of the Food Safety and Standards Act, 2006, and the Licensing and Registration of Food Businesses Regulations, 2011. The inspection was triggered by information received from Minister of State for FDA, Yogesh Kadam, the agency confirmed.

Assistant Commissioner (Food), Anupamaa Balasaheb Patil, subsequently ordered the immediate suspension of Zepto’s food business licence under Section 32(3) of the Food Safety Act and Regulation 2.1.8(4) of the Licensing Regulations.

Zepto Responds: Internal Review Underway

In a statement to Business Standard, a Zepto spokesperson said the company has begun an internal review and is working with the authorities to restore compliance. “We are committed to rectifying the lapses identified and strengthening our processes,” the spokesperson said.

The company added that it is taking “all necessary corrective measures” to resume operations in line with applicable laws.

Operational Impact and IPO Plans

The timing of this regulatory action comes as Zepto navigates operational challenges and prepares for a potential IPO. Recently, the startup temporarily shut down 44 Zepto Cafes due to supply chain disruptions. Those cafes are expected to reopen by September, and employees have reportedly been reassigned to dark stores or nearby locations in the interim.

While the licence suspension affects only one facility, it puts a spotlight on broader compliance risks — especially critical for companies seeking public investment. Zepto, which has emerged as a major player in India’s competitive quick commerce space, will now need to reassure regulators and investors alike that such issues are isolated and resolvable.

Via