Policy · Commerce & Consumer Brands

Zepto fined for dark patterns, converts to public company

By Startup Enthusiast · 5 December 2025

What they do

Zepto delivers groceries and essentials in 10 minutes across Indian cities

CCPA fined Zepto Rs 7 lakh for using dark patterns like drip pricing and basket sneaking

Zepto converted to a public company and is expected to file for an IPO soon

The Central Consumer Protection Authority (CCPA) imposed a Rs 7 lakh penalty on Zepto for using dark patterns.
CCPA found Zepto used drip pricing, where mandatory charges appear only at final checkout.
CCPA found Zepto used basket sneaking, auto-selecting add-ons like Zepto Pass without clear consent.
The CCPA order followed a January inspection and cited the Consumer Protection Act 2019 and Dark Patterns Guidelines 2023.
CCPA directed Zepto to revamp its checkout process, disclose all fees, stop dark patterns, and submit compliance proof within 15 days.
In May 2025, the consumer affairs department had issued notices to 11 firms including Zepto, Rapido, Uber, and Ola.
Zepto converted from a private to a public company, renamed from Zepto Private Limited to Zepto Limited.
The conversion was approved via a special resolution at an EGM on November 21, 2025.

CEO Aadit Palicha publicly acknowledged criticism and said some pricing practices crossed the line.
Palicha said Zepto resolved the dark patterns issue within 45-60 days and called it a mistake that won't happen again.
Zepto is expected to file its draft red herring prospectus (DRHP) before December 15, 2025 for an IPO.
The IPO is expected to raise $450-500 million in fresh capital.
Zepto closed a ~$450 million funding round in October 2025 at a $7 billion valuation.

Zepto delivers groceries and everyday essentials in 10 minutes across major Indian cities.
It operates a network of dark stores (small warehouses for quick delivery) in high-density areas.
Zepto makes money through product margins, delivery fees, and subscription plans like Zepto Pass.
In FY25, Zepto reported a turnover of Rs 11,110 crore ($1.3 billion).
Daily orders grew from ~5 lakh five quarters ago to 1.7 million.
Zepto is growing 20-25% per quarter on order volume while reducing burn.

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.

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