India’s quick commerce giant Zepto has hit another roadblock. The Maharashtra Food and Drug Administration (FDA) has suspended the food business license of Zepto’s parent company, Kiranakart Technologies Pvt Ltd, after a surprise inspection of its Dharavi dark store in Mumbai revealed alarming hygiene lapses.
What Went Wrong?
According to the FDA, officials found:
- Fungus growing on food products
- Clogged, stagnant water near storage areas
- Improper cold storage temperatures
- Expired food mixed with usable stock
These violations were considered serious enough to warrant immediate suspension of Zepto’s license. The FDA stated that operations can only resume once the company fully complies with food safety norms.
Zepto Responds
A Zepto spokesperson addressed the situation, saying:
“Maintaining the highest standards of food safety and hygiene is non-negotiable. We’ve already launched an internal review and are working with authorities to ensure full compliance.”
The company has pledged to rectify the issues and resume operations soon, ensuring that similar lapses don’t happen again.
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A String of Setbacks
This incident adds to a series of recent troubles for the startup:
- Zepto Cafe shut down in 44 North Indian locations due to supply and staffing issues
- Delivery partners went on strike in Hyderabad, citing low pay and unfair penalties
- Reports show monthly employee costs nearing ₹100 crore, almost 80% of larger competitors like Zomato and Swiggy
What This Means for Zepto
These challenges come at a crucial time for Zepto, which is reportedly gearing up for an IPO and seeking to become a fully Indian-owned company by raising funds from domestic investors. Regulatory setbacks like this could dent investor confidence and stall growth momentum.
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