Kult, a beauty marketplace, is currently embroiled in a crisis marked by unpaid salaries and financial instability. Nearly 100 employees have reportedly gone months without pay, with some waiting since November 2025. Additionally, vendors who supplied products and services to Kult are also facing payment delays, compounding the financial strain on the company.
The situation has escalated into a series of allegations against the company's leadership, particularly focusing on co-founders Rahul Yadav and Karishma Singh. Yadav's controversial entrepreneurial history is well-known, while Singh has recently come under scrutiny following the launch of Kult.
Background: Kult was incorporated in 2024, emerging from the shadows of Yadav's previous venture, Broker Network. The company had initially positioned itself as a technology-driven beauty platform, claiming to leverage AI for personalized skincare solutions.
In April 2025, Kult announced a $20 million Series A funding round, which was touted as a fresh start. However, reports indicate that the actual capital infusion was significantly lower, raising questions about the company's financial health.
Employee Experience: Employees have reported that the first signs of trouble appeared in December 2025 when salary payments were delayed. Initially attributed to operational issues, the delays have persisted, with only a small group of senior staff members receiving their salaries on time.
As financial difficulties mounted, Kult shut its Mumbai office and relocated some employees to Gurugram, where work has since halted due to continued non-payment. Management's reassurances about clearing dues have not materialized, and employees have been advised to pursue legal action against M3M, the company’s investor, rather than Kult itself.
Financial Strain: Kult's financial reports reveal a troubling picture, with operating revenue at just ₹27.5 lakh against a loss of ₹3.2 crore in FY25. The company’s operational expenses, including high employee costs and lifestyle perks, appear unsustainable given its revenue.
Despite securing a ₹10 crore loan in December, the company has struggled with liquidity, leading to M3M allegedly taking control of Kult’s bank accounts. Plans for additional funding through inventory financing have also faltered, leaving the company in a precarious position.
Future Outlook: The immediate future for Kult remains uncertain, with no clear timeline for when employee salaries or vendor payments will be resolved. The ongoing financial audit by M3M aims to address potential irregularities, but the operational viability of Kult is in question.
This situation highlights broader issues of startup governance and the risks associated with narrative-driven fundraising, leaving employees and stakeholders anxious about the company's path forward.
