2024 Startup Drama Unpacked: The Controversies That Shook the Scene!
Paytm Payments Bank Faces Major Compliance Setback
In a jaw-dropping twist, the Reserve Bank of India (RBI) cracked down on Paytm Payments Bank this February for serious regulatory violations. Persistent lapses in compliance prompted the RBI to prohibit the bank from accepting new deposits and conducting credit transactions after February 29, 2024. An external audit exposed alarming issues, particularly surrounding KYC (Know Your Customer) norms. This was not Paytm’s first rodeo, as they had previously faced penalties for similar infractions.
As a consequence, the bank was forced to halt the onboarding of new customers, leaving existing users grappling with restrictions on adding funds to their wallets and prepaid instruments. Talk about a wake-up call!
Ola Electric’s Bhavish Aggarwal Stirs the Pot
The year was a watershed moment for Ola Electric, becoming India’s first publicly-listed electric vehicle (EV) company. However, its founder, Bhavish Aggarwal, found himself embroiled in an online war of words with comedian Kunal Kamra. The clash on social media escalated as Kamra criticized Ola Electric for a lack of transparency regarding customer complaints, leading to Aggarwal retorting, “If you can’t help, then shut up and let us fix the real customer issues.”
But that was just the tip of the iceberg—Ola Electric faced a mountain of over 10,000 complaints, prompting the Central Consumer Protection Authority to issue a notice. The fallout from unresolved issues severely tarnished the company’s image. Can they bounce back?
WazirX’s Catastrophic Crypto Heist
In a staggering cyberattack, cryptocurrency exchange WazirX lost a jaw-dropping $230 million in investor assets, nearly half of its total reserves. Experts suspect the notorious Lazarus group—allegedly backed by North Korea—was behind this heist. This incident underscores the need for stronger cybersecurity measures in the crypto space. Could this be the wake-up call investors needed?
BookMyShow’s Coldplay Ticket Fiasco
When tickets for Coldplay’s highly-anticipated India concert sold out in mere minutes, fans were left fuming as they appeared on resale platforms at exorbitant prices. BookMyShow, the official ticketing partner, faced a backlash, with many accusing the company of colluding with resellers—a claim they vehemently denied. After the Mumbai police got involved, the CEO found himself under scrutiny while the investigation uncovered ticket scalping activities across social media. Yikes!
Rahul Yadav’s Legal Troubles
Rahul Yadav, founder of 4B Networks, had a rough go in 2024, as Info Edge—the parent company of job portal Naukri—filed an FIR against him for alleged fraudulent activities linked to misusing 4B’s funds. The drama escalated when arbitration proceedings were initiated over the startup’s failure to provide essential operational information. It seems trouble has a way of following him!
Mamaearth’s Inventory Controversy
Lastly, the All India Consumer Products Distributors Federation raised red flags about Mamaearth’s parent company, Honasa Consumer, claiming they were sitting on unsold inventory worth a whopping Rs 300 crore. Honasa dismissed these accusations as “misinformation,” asserting their inventory was only Rs 40.69 crore. With mounting pressure, will this beauty brand manage to clear the air?
As we reflect on these controversies, one thing is clear: the startup world is an exhilarating yet perilous place. Will these companies rise from the ashes or continue to stumble into chaos? Stay tuned!
