The Delhi High Court has restrained an NBFC from using the brand name “Zepto” and “Zepto Finance” after the quick commerce platform alleged trademark infringement and customer confusion. The order grants interim protection to Kiranakart Technologies, which owns the Zepto mark and logo, pending further hearings in the matter.
Hearing suit CS(COMM) 752/2026, Justice Jyoti Singh observed that Zepto had established a prima facie case and that an ad-interim injunction was necessary to prevent potential harm to its brand. The court directed Naman Finlease and its directors to stop using the impugned names for lending services until further orders and barred any transfer of the domain zeptofinance.com during the pendency of the case.
Trademark claims and alleged confusion
Zepto’s parent, Kiranakart Technologies Private Limited, argued that “ZEPTO” is a registered trademark and a coined term with distinctiveness. It alleged that Naman Finlease was using an identical brand name for lending operations and had sought registration without owning a registered mark, besides operating the domain zeptofinance.com.
The company said it became aware of the overlap after receiving legal notices and court summons intended for the NBFC. As an example, it pointed to a civil suit in Chennai concerning loans taken from “Zepto Finance,” where the summons listed Zepto’s official corporate address rather than the lender’s.
Zepto contended that such instances showed clear misidentification in the market, risking dilution of its brand and erosion of consumer trust.
Submissions on lending practices and ongoing cases
During arguments, Zepto referred to allegations against Naman Finlease and its director, Sachin Mittal, including claims cited from a status report in a separate bail matter. These included purported use of forged property documents to secure fraudulent home loans and alleged coercive recovery practices. In the Chennai suit, personal loans of ₹27,000 and ₹52,000 were said to carry interest at 1% per day—about 365% on a simple annual basis—far above typical lending rates.
Zepto argued that any perceived association with such allegations could seriously damage its reputation. These allegations remain sub judice and have not been adjudicated on merits.
Court’s view on brand extension and prior use
A key question was whether Zepto’s trademark protection extended to financial services. Kiranakart submitted that established brands often diversify and that its reputation warranted broader protection. It also highlighted the June 2025 launch of ZeptoCash, an in-app digital wallet with UPI functionality, to demonstrate prior presence in the financial ecosystem before the NBFC’s alleged adoption of the disputed name.
Accepting the need for interim protection, the court restrained the NBFC and its directors from using “Zepto” or “Zepto Finance” and preserved the status of the zeptofinance.com domain.
Next hearings
The matter is listed before the Joint Registrar on 21 August 2026. The High Court will take up the interim application on 30 November 2026. The proceedings are being closely tracked for their implications on trademark enforcement and protection for well-known brands expanding into adjacent sectors.
