The start of 2017 might have been a mixed bag of troubles and opportunities for Startups in India. The startups were full of controversies in the first two months of 2017. The India Startup Sector is also gearing up for mass layoffs and job losses this year with many companies issuing layoff notices to employees to cut down costs due to the inefficiency in raising funds. Most startups that start with risk and optimism, often end up hitting roadblocks as they try to rule the market fast.
Arunabh Kumar, the founder of The Viral Fever, an online entertainment content company has been accused of sexual molestation in an anonymous blog post on Medium.com by a woman blogger named ‘Indian Fowler’. Soon after the blog went viral on all the social media platforms, more women came forward to report similar unpleasant experiences that they have faced with Kumar.
Chennai – based travel startup Stayzilla, got into deep trouble this year with its Founder and CEO Yogendra Vasupal getting arrested on fraud charges. This all started when an advertising firm, Jig Saw Advertising filed a case against Stayzilla for unpaid dues worth 1.7 crores. However, a blog post written on Medium.com by Vasupal tells a different story about the whole incident. The incident came to light when in a leaked email, the co-founder of Stayzilla Sachit Singhi was asking help from investors. In the email, Singhi wrote “ We need help. Yogi (Vasupal) is missing!!!”
E-commerce player Snapdeal is facing a severe cash crisis and losses this year. As a result, the company is undertaking layoffs within the organisation.
Mohit Goel, the director of Noida- based company Ringing Bells was arrested last month following a fraud complaint that his company had not supplied order of handsets that a dealer called Ayam Enterprise had paid for. The founder of the smartphone maker shot to fame last year by offering a world’s cheapest mobile phone at a price of Rs. 251.
Best Deal TV, a home shopping channel owned by celebrity couple Shilpa Shetty and Raj Kundra temporarily suspended operations in November last year after noticing a drop in the business post demonetization drive and a cash crunch in the country. After the channel suspended its service, Raj Kundra also officially stepped down as CEO of the company. However, he continues to be on the board of directors with a 63 per cent stake. After Kundra’s resignation, the employees were informed about the company’s decision to impose a 50 percent salary cut for the month of November and December. The employees of the shopping portal later alleged that the company has not paid their dues for the two months.