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Major Controversies In The Startup World In 2018
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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