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Policy · Commerce & Consumer Brands

Zepto wins trademark injunction against Zepto Finance

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Date
Company
Zepto
What it does
Quick commerce grocery delivery
Kind
Policy
Based in
Mumbai
Founded
2021
Sector
Commerce & Consumer Brands

What they do

Zepto is a quick commerce platform delivering groceries and essentials in minutes

What happened

Delhi High Court granted an interim injunction stopping Zepto Finance from using the Zepto trademark

Why it matters

The court noted Zepto has built strong brand goodwill since 2021 and also offers financial services like BNPL

The details

  • Delhi High Court granted Zepto an ex-parte interim injunction against entities using the name 'Zepto Finance'.
  • The order, dated July 22 by Justice Jyoti Singh, restrains the defendants from using the Zepto trademark or any deceptively similar mark.
  • Zepto's IPO valuation is expected to be between $2.5 billion and $4.5 billion.
  • Zepto sent cease-and-desist notices in March after discovering the alleged infringement, but the defendants continued using the marks.
  • Summons in a civil suit about a personal loan dispute were inadvertently served at one of Zepto's dark stores due to name similarity.
  • The court issued summons in the commercial suit; the matter is listed before a Joint Registrar on August 21 and before the court on November 30.

The bigger picture

  • The court observed Zepto has established significant goodwill through continuous trademark use since 2021 and diversified into payment wallet and BNPL services.
  • Last year, Delhi HC ordered removal of a 'Zepto' trademark registered by Mohammad Arshad in 2014, finding he never used it commercially.
  • That earlier ruling cleared the way for Zepto to register its own mark, which it now uses to protect its brand.
  • Zepto is preparing for a stock market debut that could value it well below its peak private valuation of $7 Bn.

About the business

  • Zepto is a quick commerce platform that delivers groceries and essentials in minutes.
  • It operates under the registered 'Zepto' trademark and has expanded into financial offerings including Zepto Cash and Zepto Pay Later (BNPL).
  • The company filed an updated draft red herring prospectus (UDRHP) with SEBI last month for an IPO.
  • The IPO includes a fresh issue of shares worth ₹8,010 Cr and an offer for sale of up to 11.35 Cr shares.
  • Fresh capital will be used to expand the dark store network, fuel growth and marketing, and enhance the tech stack.

What happens next

  • Zepto is eyeing an IPO within August.
  • Final valuation could change before the anchor book closes and price band is announced.
  • Pricing depends on investor demand and market conditions.

The deal

Type
IPO

Investors

  • Nexus Venture Partners (seller) — Existing investor offloading shares via OFS.
  • Razor Capital (seller) — Existing investor offloading shares via OFS.
  • Contrary Capital (seller) — Existing investor offloading shares via OFS.
  • Norges Bank Investment Management (anchor) — Norway's sovereign wealth fund expected to account for 40-45% of anchor book.
  • Motilal Oswal (anchor) — Expected to account for 40-45% of anchor book along with Norges.

Founders

  • Aadit Palicha, Co-founder & CEO
  • Kaivalya Vohra, Co-founder & CTO

About Zepto

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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