Delhi High Court Restrains 'Zepto Finance' From Using Zepto Trademark

The Delhi High Court has issued an interim injunction preventing entities operating as "Zepto Finance" from using the "Zepto" trademark or any deceptively similar marks. The order, dated July 22, followed a finding by Justice Jyoti Singh that Zepto had established a prima facie case of trademark infringement.

Zepto, a quick commerce startup, alleged that "Zepto Finance" (operated by NBFC Naman Finlease Private Limited) was using its domain name and social media to offer lending services. This infringes on Zepto's registered trademark and its own expansion into financial offerings like Zepto Cash and Zepto Pay Later. Zepto argued that the similarity in names had already led to confusion, with legal notices and complaints related to alleged loan fraud mistakenly sent to Zepto.

The court accepted Zepto's submission that the defendants' use of "Zepto Finance" for lending services was likely to cause confusion, especially given Zepto's established goodwill since 2021 and its diversification into payment solutions. The startup also cited instances where legal summons concerning personal loan disputes were inadvertently served at its dark stores.

This ruling is not Zepto's first trademark victory. Last year, the company successfully challenged the registration of a "Zepto" trademark held by another party, which had not been used commercially.

The court's decision arrives as Zepto prepares for its upcoming stock market debut, reportedly eyed for August. The company aims to raise approximately ₹8,010 crore (around $96 million USD) through its IPO to fund network expansion, growth, marketing, and technological enhancements.