The Maharashtra Food and Drug Administration (FDA) has suspended the food business license of Zepto parent Kiranakart Technologies Pvt Ltd after finding lapses at its Dharavi facility in Mumbai.
The agency found that certain food articles in Zepto’s Dharavi dark store had fungus growing on them, products were stored in and near clogged stagnant water, indicating poor hygiene.
Maharashtra’s FDA also noted that cold storage temperatures were not maintained as per regulatory standards and expired food products were not clearly separated from non-expired stock.
“These findings constitute a failure to comply with the conditions of the license,” the FDA said in its statement.
These lapses have led to the suspension of Zepto’s food license and the suspension will remain in place until the FDA is convinced the company has course corrected.
“At Zepto, maintaining the highest standards of food safety and hygiene is non-negotiable. We have already initiated an internal review and are working closely with the concerned authorities to ensure full and swift compliance,” a Zepto spokesperson said.
Zepto is one of the top quick commerce firms in India and competes with Swiggy and Zomato.
“We are committed to rectifying the lapses identified, and strengthening our processes to provide the best and safest quality of products to our consumers. We are taking all necessary corrective measures to resume operations in accordance with regulatory obligations and applicable laws at the earliest,” the Zepto spokesperson added.
The FDA suspending Zepto’s food license is the latest development in a series of headaches for the startup. Recently, Zepto paused Zepto Cafe in 44 locations, and saw its delivery partners striking in Hyderabad, too which will impact the business and its future growth prospects.
These hiccups come at a time when the company is preparing to go public and has been raising money from domestic investors to become a fully Indian-owned firm.
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