Disagreements between startup founders and investors.....several liquidations

- A situation has arisen where some of the so-called top startups have to be jailed...

- Baiju Ravindran of Byjus, Ashneer Grover of Bharat Pay, CEO of Zilingo Ankiti Bose are stuck: Behind them are the investigating officers: They knew where the money came from but did not know where it went..

- Some startups seem to have changed the definition of foreign direct investment. As soon as the Enforcement Directorate caught the ear, the scams started coming out...

While India's startups are proud, they are also surrounded by controversies. A situation has arisen where some of the so-called top startups have to be considered jail bars. Some have misused the funds and some have had differences with investors. A foreign exchange case has been filed against Byju Ravindran of education-related startup Byjus, while scams have been found in the accounts of Bharat Pay's Ashneer Grover. Zelingo CEO Ankiti Bose was ousted due to financial irregularities.

Social commerce startup Trail was supposed to get a funding of 100 million to become a unicorn, but the funding got stuck due to disagreements from other investors.

By imposing goods and services tax on online gaming startups, the government has pushed them into recession. Just because the government announces full support to new business entrants, it does not mean that the accounts of investments associated with startups are not shown to anyone. Most of the startups receiving foreign funding have not had their accounts audited or submitted to banks.

Some startups seem to have changed the definition of foreign direct investment. As soon as the Enforcement Directorate caught the ear, the scams started coming out. Baiju Ravindran of Byjus is accused of a scam of 9,362 crores. He used to manage black money.

Just like the Sahara Group was caught in the business of laundering black money, the startups are doing it. It seems that these people have not understood the need to keep account of crores of rupees coming from abroad.

Bharat Pay is a three billion dollar venture. Its founder Ashneer Grover has become the talk of the town. He came into controversy after he was seen abusing and threatening to kill Kotak Bank staff in a video. After the controversy, he resigned from the post of MD of the company. After his resignation, when the company audited his accounts, financial scams perpetrated by him and his wife Madhuri were seen.

When the Income Tax raided 23 offices of the business-to-business (M2M) unicorn infra market, objectionable documents worth Rs 224 crore were found.

Zilingo founder Ankiti Bose was suspended in connection with financial scam. Currently, Zilingo is running without a CEO. Singapore-based Startup Shop has shut down its India unit. Due to which about 300 of its employees lost their jobs.

Unacademy, the second largest edtech startup associated with education technology, laid off 1000 employees overnight. A loss-making startup called OK Credit laid off 40 people. Furlenco, a furniture rental startup, laid off 180 employees and brought the company to a profit by saving those costs.

Unicorn Vedantu sacked 200 people.

A total of six startups have laid off 1900 employees. The bubble of real profits of startups that started with huge capital has burst. It is also said that employment will increase due to this new sector. The year 2021 saw the buzz of unicorn (1 billion dollar assets) startups. In 2021, 44 startups became unicorns. 2022 was not a disappointment either. It included 14 new startups in the Unicorn Club. But 2023 came full of problems in the startup sector

There is a lot of tussle between the person who brings the idea of ​​starting a new business and his investors, but the investor is smarter than the founder. The investor puts one of his own people to work with the founder brain and then get to know the ecosystem of the business. With time the game begins to move the founder who is the brain of the idea behind the business.

The Enforcement Directorate had an eye on foreign exchange. Investigation has been started against many companies. A reputed startup like Edu Tech had no accounts of transactions with foreign countries. He knew where the money came from but did not know where it went.

The system of launching a startup is worth understanding. In which the one who has an idea does not have money. Due to which he is looking for an investor. The investor invests by looking at the file of the idea bringer. First of all, an investment car considers whether the interest earned in the bank will meet its capital. If the business idea is profitable, then the investor also invites other investors.

The problem arises that the investor is in a hurry to get his return and the founder works patiently to make his planning a success. As the company builds recognition in the market, investors make decisions for its expansion and sidetrack the founder.

On the other side of the coin, the founder, seeing foreign funds, invests them indiscriminately and does not realize that their accounts should be kept. The Enforcement Directorate had been eyeing such a startup for quite some time. Now there are many traps.