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Major Controversies In The Startup World In 2018

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At a time when fake news is considered to be real news and when people are  pointing out flaws in every aspect, it comes as no surprise that controversies and scam haven’t spared even the startup world! While this year saw major acquisitions and mishaps, it also saw controversies of a different kind. Here’s our yearly wrap up of what happened in the controversial world of 2018!

1. Everything about the Walmart and Flipkart deal 

Even before the Walmart takeover, Flipkart was already doing really well. From securing $ 5 billion through multiple investments in 2017, to doing really well in different investment series in a given time, Flipkart’s market position was quite strong at the time. While Sachin Bansal stepping down as CEO was written in the cards from the very beginning, Binny Bansal’s exit came as a result of an issue which took place over 2 years. Binny Bansal, the ex CEO of Flipkart, was being blackmailed by a co worker he was involved with and the only way he saw fit to resolve the problem was by stepping away from the company. To make matters interesting, prior to the takeover by Walmart, the Flipkart CEOs were also accused of evading tax!

2. The Paytm Data Leak Controversy 

Ranked number two on the list of the most successful startups in India, Paytm has been embroiled in its fair share of controversies. Primarily formed as a digital payments company, Paytm grew by 10 times since the day it was founded to where it is today. However, despite being one of the first Indian startups to secure an investment from Berkshire Hathaway, Paytm stayed on the headlines for being involved in multiple controversies. The first major issue was Vijay Shekhar Sharma admitting on video he had shared data with the Prime Minister of India without obtaining consent from the users. While this issue cleared in due time, another one promptly popped up. Paytm again hit the headlines because of the data extortion case levied against the Vice President of Corporate Communications, Paytm, Sonia Dhawan, her husband Roopak Jain, another Paytm employee, Devendra Kumar and his friend, Rohit Chomal. The four of them were accused of creating a plan to extort $1.4 million from Vijay, threatening to release the “personal data” in public otherwise. A typical case of jumping from the frying pan into the fire, right? Three of the four accused are still in jail and are waiting for their case to be heard.

3. The Huawei controversy 

Over the last few years, Huawei has been trying to expand all over the United States. However, in the beginning of 2018, a lot of almost sure deals started falling through, citing international political concerns as a major issue. Initially expected to sign major deals with major telecommunication companies like Verizon, Wireless and AT&T, the deals fell through without a  warning of any kind. The reasons are attributed to Huawei’s alleged ties with the Chinese Government, which a lot of people saw as a threat, especially in the United States.

4. The Apple affair 

Despite being all about introducing a series of new phones in this last year, Apple was involved in quite a heated controversy. Recently, Apple was in the headlines not for the phones released by the company, but for the fact that Apple was accused of “throttling.” Simply defined, throttling is defined as a process wherein the makers slow down the performance of older iPhones to save the phones’ battery life. Although Apple CEO Tim Cook came forward with a public statement saying they should have been more forward and transparent about the practice, the response was considered to be less than satisfactory. Furthermore, one of the major reasons throttling was a concern was the indirect push it gave people to constantly upgrade to new iPhones. The status of this issue now is, two federal agencies, the U.S. Department of Justice and the U.S. Securities and Exchange Services, are investing the case.

5. The Xerox and Fujifilm Holdings deal 

Early in the year (on January 31, 2018, to be precise,) Xerox agreed to enter a merger with Fujifilm Holdings wherein Fujifilm would have a major stake in Xerox. Furthermore, the deal was expected to touch the $ 18 billion mark in the printer industry. However, the deal quickly turned sour with all the fights and quarrels that took place over the deal. Finally, after a long drawn out battle, the reinstated board of Xerox backed off from the deal. Now, Fujifilm is filing a lawsuit of $ 1 billion against Xerox, saying they were facing major damages with regards to the breach of contract!

The year 2018 certainly was interesting, especially when related to all the controversies in the startup world. If you think we missed out on any other issues such as these, comment and let us know!

 

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Swiggy Launches Pyng: An AI-Powered App Connecting Users with Verified Professionals

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Swiggy - StartupStories

Swiggy has launched Pyng, a new app aimed at connecting consumers with verified professionals across over 100 specializations, including yoga instructors, financial advisors, tutors, and event planners. Currently live in Bengaluru, Pyng uses AI to match users with trusted experts and offers a money-back guarantee for unsatisfactory services.

The app also provides professionals with tools to manage bookings, track payments, and schedule services efficiently. This marks Swiggy’s entry into the professional services marketplace, expanding beyond its core food delivery and quick commerce businesses. Pyng is available on both iOS and Android, with plans for a nationwide rollout.

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Eat Better Secures ₹17 Crore in Pre-Series A Funding

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Eat Better, a Jaipur-based D2C snacking brand, has raised ₹17 crore in a Pre-Series A funding round co-led by Prath Ventures and Spring Marketing Capital. Founded by Vidushi Kanoria, Mridula Kanoria, and Shaurya Kanoria in 2020, Eat Better specializes in healthy snacks like dry fruit ladoos and nuts.

Key Highlights:

  • Investment Use: Funds will expand Eat Better’s product line and enhance its presence on quick commerce platforms.
  • Market Position: Competes with brands like Happilo and Yoga Bar in the healthy snacking space.
  • Operational Milestones: Fulfills over 2 lakh orders monthly.
  • Financial Performance: Revenue grew nearly threefold to ₹14.47 crore in FY24, with a reduced net loss.

Market Opportunity:

The Indian food and beverages market is projected to reach $68 billion by 2030, positioning Eat Better favorably to capitalize on the demand for healthy snacks. With this funding, Eat Better aims to strengthen its market presence and product offerings.

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Funding

Outzidr Raises ₹30 Crore to Transform Gen Z Fashion

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Bengaluru-based D2C fashion startup Outzidr, co-founded by Nirmal Jain, Mani Kant Mani, and Justin Mario, has secured ₹30 crore in seed funding led by Stellaris Venture Partners, with participation from angel investors like Ramakant Sharma (Livspace) and Ghazal Alagh (Mamaearth).

Launched in February 2025, Outzidr targets Gen Z women aged 17–27 with affordable occasion-specific apparel such as partywear and travel outfits. The brand introduces over 2,000 new designs monthly and uses a “test-and-react” model to scale popular styles based on early sales data. With an agile inventory cycle of less than three weeks, it plans to shift 90% of manufacturing to India within two years for sustainability.

The funds will bolster supply chain efficiency, technology development, team expansion, and brand-building. Outzidr aims to achieve ₹100 crore annualized revenue within 6–8 months through its D2C platform and marketplaces like Myntra, Nykaa Fashion, and AJIO.

Led by industry veterans with expertise in fashion and logistics, Outzidr is poised to capitalize on India’s growing D2C market fueled by Gen Z’s demand for trendy and affordable fashion.

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