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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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Tinder U: Revolutionizing Campus Connections for College Students in India

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Tinder has introduced Tinder U, a new feature tailored for university and college students in India. This in-app experience simplifies connections by letting students match with peers from their own campus or nearby colleges. Verified users can personalize their profiles with details like graduation year, major, and campus activities to find matches based on shared interests.

 

Key features include:

  • Simplified Connections: Users can express interest with ‘Like’ or ‘Super Like,’ eliminating awkward DMs.
  • Local Matches: Prioritizes connections within the university and nearby colleges.
  • Safe Environment: Only verified students can join, ensuring authenticity.

 

To access Tinder U, students must verify their college email address (e.g., ending in .edu.in or .ac.in). Once enrolled, they unlock a customized dating experience, including an exclusive app icon for iOS users. This feature aims to foster genuine connections and enhance campus social life, making it easier to meet study partners, friends, or romantic interests

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Uber in Talks to Acquire EV Ride-Hailing Startup BluSmart

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Uber in Talks to Acquire EV Ride-Hailing Startup BluSmart

Uber Technologies is reportedly in early discussions to acquire BluSmart Mobility, a Gurugram-based electric vehicle (EV) ride-hailing startup. The potential deal comes as BluSmart’s parent company, Gensol Engineering, faces financial challenges and explores exiting the capital-intensive EV business.

BluSmart’s Unique Model

Founded in 2019, BluSmart operates an all-electric fleet of over 5,000 vehicles across cities like Delhi-NCR, Mumbai, and Bengaluru. Unlike competitors such as Uber and Ola, BluSmart directly owns its fleet and manages its charging infrastructure. While this model promotes sustainability and premium services, it has led to high operational costs.

Strategic Fit for Uber

Acquiring BluSmart could help Uber expand its EV footprint in India, complementing its “Uber Green” initiative and plans to deploy 25,000 Tata EVs. BluSmart’s fleet and charging network would provide a strategic edge as Uber competes with rivals like Ola and Rapido in the growing EV market.

Financial Pressures on BluSmart

Despite raising over $109 million in funding, BluSmart has struggled with profitability due to high capital expenditures and delays in government EV subsidies. Gensol Engineering’s liquidity issues have further fueled speculation about a potential sale.

Denial of Acquisition Talks

BluSmart has denied any ongoing discussions with Uber, calling such reports speculative. However, industry experts believe the acquisition could reshape India’s EV ride-hailing sector if finalized.

Conclusion

While no deal has been confirmed, Uber’s interest in BluSmart underscores the growing competition in India’s EV mobility space. If successful, this acquisition could strengthen Uber’s sustainability goals while addressing BluSmart’s financial challenges.

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Groww in Talks to Acquire Wealthtech Startup Fisdom

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StartupStories - Groww

Investment tech unicorn Groww, India’s largest stock broking platform, is reportedly in early discussions to acquire Fisdom, a Bengaluru-based wealthtech startup backed by PayU. The deal could value Fisdom between $140 million and $160 million and aligns with Groww’s strategy to diversify its offerings ahead of its anticipated IPO later this year.

About Groww and Fisdom

Groww, founded in 2016, is known for simplifying financial services and is India’s leading distributor of mutual fund SIPs. The company aims to expand beyond trading and mutual fund distribution as it prepares for an IPO that could value it between $6 billion and $8 billion.

Fisdom, established in 2015, offers financial services such as mutual fund investments, insurance, tax filing, and private wealth management. It powers banks and distributors for selling mutual funds and recently launched portfolio management services for high-net-worth individuals (HNIs).

Strategic Implications

The acquisition would allow Groww to leverage Fisdom’s distribution technology and private wealth management expertise. This move could complement Groww’s new wealth platform, “W by Groww,” and help diversify its revenue streams amid regulatory changes impacting derivative trading.

Conclusion

If finalized, the acquisition would strengthen Groww’s position in the wealth management sector while providing Fisdom with growth capital to expand its operations. Regulatory approvals could take up to six months to complete the deal.

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