How ED’s Parimatch Probe Brought Zepto Into Focus

The Enforcement Directorate asked IPO-bound quick commerce platform Zepto to join its investigation into alleged money laundering linked to Parimatch, a Cyprus-based betting platform banned in India.

Citing sources, ET reported that the ED found that Zepto ran promotional campaigns on Parimatch, which was operating in India through mirror websites after facing a ban. Further, the agency allegedly discovered that Zepto circulated flyers with its customer orders promoting the betting platform.

As per the report, the regulator questioned Zepto on whether it was aware of Parimatch’s credentials before it ran an advertising campaign for the betting platform. Notably, the information and broadcasting ministry issued an advisory in 2022 against promoting online gambling or betting through advertising campaigns.

However, sources close to the startup told ET that Zepto was not the only quick commerce platform that ED reached out to in connection with the money laundering probe against Parimatch. “Information pertaining to Parimatch was sought over email. The agency was informed that a third-party managed the said ads. Their details were shared with the agency, following which no communique was received from them. To be clear, nobody was summoned,” one of the sources was quoted as saying.

Questions sent to Zepto remained unanswered till the time of publication. The story will be updated on receiving responses.

Last week, the ED raided 17 locations across six states linked to Parimatch after it found that the online betting platform raked in ₹3,000 Cr within a year through its operations in India. The officials seized ₹1.2 Cr in cash and froze bank balances worth ₹3.8 Cr. So far, assets worth ₹112 Cr have been frozen in the case, the ED said.

The platform adopted surrogate advertising campaigns under names such as “Parimatch Sports” and “Parimatch News” to expand its reach in India, the investigation agency said in a statement last week.

The ED further noted at the time that the platform promoted betting-related advertisements through quick commerce applications and circulated promotional material along with grocery deliveries to attract and onboard new users. “Such advertisements were strategically displayed to users during app usage and order placements,” it said.

The platform also adopted a hyperlocal advertisement strategy by sponsoring teams in local cricket leagues across more than 15 states, besides supporting hockey and football tournaments.

Notably, Parimatch has been on the radar of Indian investigative agencies for years over alleged money laundering. Despite repeated bans on their apps and websites, betting platforms such as Parimatch continue to find new ways to reach Indian users.

As per the ED, many illegal betting platforms in India are advertising their platforms, especially through social media platforms like Instagram where they run regular sports content that redirects to their platforms. India’s rapidly expanding digital payments ecosystem is also posing fresh regulatory and financial enforcement challenges, it said.

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