This year, regulatory scrutiny has caused startup darlings Byju’s and a former Paytm affiliate to fall into a crisis, dealing a serious blow to India’s burgeoning tech economy.
“Founders and venture capitalists bear a greater obligation to ensure that the company’s governance is sound,” stated Ashish Wadhwani, Ivy Cap Ventures’ managing partner and co-founder.
According to statistics from global startup data platform Tracxn, financing for Indian startups fell 83% to $7 billion in 2023 from a record $41.6 billion in 2021 amid a wider worldwide venture funding withdrawal.
This year, regulatory scrutiny has caused startup darlings Byju’s and a former Paytm affiliate to fall into a crisis, dealing a serious blow to India’s burgeoning tech economy.
Regarding how to maintain corporate governance standards at a level that is both sustainable and of the highest caliber, there has been a bit of a reality check over the past few years, according to Karan Mohla, general partner of venture capital company B Capital Group.
After the Reserve Bank of India ordered Paytm Payments Bank to halt onboarding new customers immediately, the bank has become embroiled in controversy. In fact, in an effort to address regulatory issues, the larger fintech company Paytm severed certain relationships with the struggling banking division. Although not under Paytm’s authority, the banking division has been handling the majority of its payments.
Following that, an audit of Paytm Payments Bank “found ongoing serious supervisory concerns and persistent non-compliances in the
The federal anti-fraud agency is apparently looking into the unit for potential violations of foreign exchange laws in addition to its inability to turn a profit.
Vijay Shekhar Sharma, the founder and CEO of Paytm, announced his resignation from the board of Paytm Payments Bank in an exchange filing on February 26, according to One97 Communications, the business that owns Paytm.
“Founders and venture capitalists bear a larger obligation to ensure that the company’s governance is sound,” stated Ashish Wadhwani, IvyCap Ventures’ managing partner and co-founder.
