The Enforcement Directorate (ED) has widened its net in the multi-crore money laundering investigation against Cyprus-based illegal betting platform Parimatch. In a significant development, the federal agency has questioned leading quick-commerce platform Zepto regarding its promotional tie-ups with the banned gambling entity.
The development highlights a growing trend of illegal offshore gaming operators exploiting domestic digital advertising and quick-commerce channels to aggressively acquire Indian users.
Direct Delivery of Gambling Ads to Households
During its investigation, the ED discovered that Parimatch was utilizing local quick-commerce apps to execute hyper-targeted, offline marketing campaigns.
- The Modus Operandi: Zepto allegedly ran digital promotional banners inside its mobile application during order placements.
- Physical Handouts: More critically, investigators found that physical flyers and promotional materials for the banned betting platform were packed alongside grocery orders and delivered directly to consumers’ homes.
The agency has sought official explanations from Zepto over its merchant onboarding and ad-compliance vetting processes. The Ministry of Information and Broadcasting (MIB) has a strict standing advisory explicitly prohibiting any form of surrogate or direct advertising for online betting apps.
Zepto’s Official Stance: “Third-Party Ad Management”
Sources close to Zepto clarified that the platform’s leadership has not received formal executive summons, but was approached via email to share transaction and client records.
Zepto informed the ED that the advertising real estate on its app and delivery bags was handled entirely by an external, third-party ad network. The startup has since passed the credentials and contract details of the ad vendor to the agency for further scrutiny. Personnel close to the matter noted that Zepto is not the only quick-commerce or logistics application under the radar for displaying these automated third-party ad networks.
The Scale of the Parimatch Money Laundering Racket
The scrutiny on Zepto is a branch of a massive ongoing PMLA (Prevention of Money Laundering Act) case against Parimatch. On May 26, 2026, the ED’s Mumbai Zonal Office raided 17 separate locations across six states—including Delhi, Maharashtra, and Gujarat—seizing ₹1.56 crore in movable assets and freezing bank accounts worth ₹3.8 crore.
To date, the ED has frozen aggregate assets worth ₹112 crore linked to the platform.
How the Fund Layering Operated
According to ED disclosures, Parimatch generated over ₹3,000 crore annually by duping retail users. The platform masked its financial trail through an intricate web of digital evasions:
| Step in Money Trail | Operational Mechanism |
| User Ingestion | Onboarded via surrogate brands (‘Parimatch Sports’/’Parimatch News’) and quick-commerce ads. |
| Collection & Layering | Deposits routed into fake current accounts opened under the guise of legitimate fintech, IT, and software firms. |
| Mule Clearing | Winners’ payouts were settled directly by peer-to-peer (P2P) routing from new users’ incoming UPI transfers, leaving no paper trail to the actual platform. |
| Exfiltration | Excess cash was collected through local Cash Management Services (CMS) and retail kirana store agents, eventually exiting India via hawala channels. |
The investigation remains ongoing as authorities map out the wider advertising networks and digital intermediaries that enabled the offshore entity to bypass nationwide bans.