ED Probe on Parimatch Reaches Zepto Deliveries.. L

The Enforcement Directorate (ED) has widened its probe into banned betting site Parimatch, bringing quick-commerce startup Zepto under scrutiny after flyers promoting Parimatch were allegedly slipped into customer orders. Zepto denies any operational role, claiming the ads were placed via a third-party agency in March 2025.

Investigation has further revealed that the platform promoted betting‑related advertisements through leading quick‑commerce applications and circulated promotional material along with grocery deliveries to attract and onboard new users. 

What Happened

• ED probe: Authorities are investigating offshore betting operations linked to Parimatch, banned in India since 2022.
• Zepto involvement: Flyers and ads promoting Parimatch were allegedly distributed through Zepto’s delivery network.
• Government advisory: A 2022 Ministry of Information & Broadcasting warning explicitly prohibited platforms from carrying betting ads.
• Money laundering angle: The ED is examining possible violations of foreign exchange rules and laundering of betting funds.

Zepto’s Response

• Denial of operational role: Zepto insists it had no direct relationship with Parimatch and that the campaign was managed externally by a third-party media agency.
• Cooperation with ED: The company says it has shared all requested information and connected investigators with the external agency.
• Clarification: Zepto emphasized it was not involved in betting, gaming, payments, or user acquisition activities.

Regulatory Context

• Surrogate branding: Parimatch allegedly continues operations in India under names like Parimatch Sports and Parimatch News, blurring lines between sports media and betting.
• Quick-commerce scrutiny: ED has also contacted other delivery platforms to check for similar associations.
• Legal framework: Under the Promotion and Regulation of Online Gaming Act, 2025 (PROGA), promoting betting ads can trigger criminal liability.

Key Takeaways

Aspect	Details
ED’s focus	Offshore betting, money laundering, FX violations
Zepto’s role	Flyers/ad campaigns allegedly linked to Parimatch
Zepto’s stance	No direct involvement; third-party agency handled ads
Risk for Zepto	Reputational damage, compliance tightening, IPO overhang
Industry impact	Quick-commerce platforms may face stricter advertiser verification

Risks & Implications

• Reputational risk: Even without direct involvement, association with betting ads could hurt Zepto’s brand, especially ahead of IPO plans.
• Compliance tightening: Platforms may need stricter advertiser vetting, similar to broadcasters and publishers.
• Legal exposure: If ED finds liability, Zepto could face penalties under PROGA and FEMA.

Aspect	Details
ED press release	Issued May 27, 2026
Key finding	Betting ads promoted via quick‑commerce platforms
Zepto’s role	Flyers placed via third‑party agency
ED action	17 searches, ₹1.2 crore cash seized, ₹3.8 crore frozen
Legal risk	PROGA criminalises betting ad promotion