The Maharashtra Food and Drug Administration (FDA) has suspended the food business license of Kiranakart Technologies Pvt Ltd, the parent company of quick commerce platform Zepto, following serious hygiene violations at its Dharavi dark store in Mumbai.
According to the FDA, its inspection revealed multiple lapses, including the presence of fungus on food products and storage of goods in and around clogged, stagnant water. The facility also failed to maintain cold storage temperatures as required by regulations and did not properly separate expired items from the rest of its inventory.
“These findings constitute a failure to comply with the conditions of the license,” the FDA said in an official statement. The suspension will remain in effect until the agency is satisfied that corrective actions have been fully implemented.
Zepto's Response
Zepto, which competes with platforms like Swiggy and Zomato, responded by saying it has begun an internal review and is working closely with authorities to meet compliance standards.
“At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable. We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance,” a Zepto spokesperson said.
“We are committed to rectifying the lapses identified and strengthening our processes to provide the best and safest quality of products to our consumers. We are taking all necessary corrective measures to resume operations in accordance with regulatory obligations and applicable laws at the earliest,” the Zepto spokesperson added.
The FDA action adds to a growing list of operational challenges for the startup. Zepto recently paused its Zepto Cafe service across 44 locations and has faced delivery partner strikes in Hyderabad — developments that may affect its business and future growth. These issues come as Zepto prepares for a public listing and works to raise funds from domestic investors in a bid to become a fully Indian-owned company.
