At the recent TiE Delhi-NCR Summit, Snapdeal and Titan Capital co-founder Kunal Bahl addressed the growing concerns over governance issues within India’s startup landscape. He emphasized that recent scandals have significantly eroded investor and public trust, urging founders to prioritize financial discipline and robust oversight from the inception of their ventures. 

Bahl’s comments come in the wake of several high-profile controversies involving startups such as Gensol Engineering and its sister concern BluSmart, Byju’s, BharatPe, GoMechanic, Groyyo, Mojocare, and Zilingo. These incidents have prompted heightened scrutiny of internal controls and governance practices across the startup sector. The fallout from these scandals has led to increased investor caution. Many investors are now imposing stricter clauses in funding agreements and are more frequently engaging independent auditors to assess the financial health and governance standards of startups.

Despite the challenges, Bahl expressed cautious optimism about the future of Indian startups. He noted that while the sector faces hurdles, there is potential for increased funding and IPO activity in 2025, contingent on improved governance practices and restored investor confidence.

Bahl’s emphasis on early-stage governance underscores a broader shift in the startup ecosystem, where founders are increasingly recognizing the importance of establishing strong financial and operational controls from the outset. This proactive approach is seen as essential for building sustainable businesses and maintaining the trust of stakeholders.

As the Indian startup ecosystem continues to evolve, industry leaders like Bahl advocate for a culture of transparency and accountability. By addressing governance issues head-on, startups can work towards rebuilding trust and ensuring long-term success in a competitive market.