The Maharashtra Food and Drug Administration (FDA) has suspended the operating license of Zepto’s Dharavi warehouse following the discovery of expired food items and fungal contamination during a surprise inspection. The facility is operated by Kiranakart Technologies Pvt. Ltd., the parent company of the 10-minute grocery delivery startup Zepto.
Key Findings from the FDA Inspection:
- Fungal growth detected on stored food items
- Expired products found stored with non-expired inventory
- Cold storage failing to maintain required temperatures
- Unsanitary conditions including wet floors and poor drainage
- Food materials stored near stagnant water
The inspection was carried out after a tip-off received by FDA Minister of State Yogesh Kadam, prompting immediate regulatory action. Photographic evidence taken during the inspection shows disturbing hygiene violations, with visibly spoiled food and improperly maintained storage conditions.
Zepto Responds
Zepto has confirmed that it is conducting an internal review and is cooperating with authorities. The company has temporarily suspended operations at the Dharavi warehouse and has also halted Zepto Cafe services in Delhi and Chandigarh as a precautionary step.
In a statement, a Zepto spokesperson said:
“We are taking this matter seriously and are working to rectify any gaps in protocol. We remain committed to food safety and compliance with all government regulations.”
Regulatory Action and Consumer Concerns
The FDA has not yet confirmed when or if Zepto’s license for the Dharavi facility will be reinstated. Officials indicated that the suspension will remain in place until all violations are addressed and the facility passes re-inspection.
The incident has raised serious concerns about hygiene standards in India’s rapidly growing quick-commerce sector, which includes players like Blinkit, Swiggy Instamart, and Dunzo.
Health experts and food safety advocates have called for stricter oversight of dark stores and fulfillment centers operated by such platforms.
Impact on Zepto’s Business
The suspension affects one of Zepto’s key distribution hubs in Mumbai, a major market for the startup. While deliveries in the region have been rerouted to alternate facilities, the controversy could dent Zepto’s image as a reliable and safe provider of groceries and ready-to-eat products.
Zepto, founded in 2021, has raised more than $1.3 billion in funding and was last valued at $5 billion following a $350 million round in November 2024. The company has over 250 dark stores in India and serves millions of customers with a median delivery time of under 9 minutes.
Industry Watch
This is the most serious regulatory action taken against Zepto since its inception. The incident has prompted speculation that food safety inspections could be increased across the quick-commerce industry in major metros.
Consumer rights groups are now urging the Food Safety and Standards Authority of India (FSSAI) to tighten compliance norms and mandate more frequent inspections.
Read the full FDA report and visuals here:
Horrifying pictures: Fungal growth on food, expired products – TOI
Insight Tech Talk will continue to follow this developing story and its implications for India’s fast-growing e-grocery sector.
For tips or industry leads, write to us at insighttechtalk@gmail.com
