Kult is currently experiencing significant turmoil, with its operations coming to a standstill due to a conflict with its main investor. This situation has resulted in employees going unpaid for several months, raising concerns about the startup's future.
Funding Challenges: In April 2025, Kult announced a $20 million Series A funding round led by the M3M Family Office, aimed at alleviating previous debts and increasing order volume. However, reports suggest that only around ₹50 crore was actually received, failing to address underlying governance issues.
Emerging Issues: By December 2025, problems became apparent as salaries were halted and vendors remained unpaid. Reports indicate that only a select group of employees continued to receive compensation. The company also relocated its Mumbai office to Gurugram, further complicating internal communications.
Leadership Response: Amid escalating pressure, CEO Karishma Singh has remained largely silent. In contrast, her husband, Rahul Yadav, a cofounder of Housing.com, has allegedly encouraged Kult employees to seek payment from M3M. The investment firm has since distanced itself from the situation and initiated a financial audit.
Financial Performance: The financial outlook for Kult is grim. Despite securing approximately ₹50 crore in funding, the company reported only ₹27.5 lakh in revenue for FY25, alongside losses totaling ₹3.2 crore. Sources indicate that Kult has relied heavily on debt and sought inventory financing, which hinged on guarantees that did not materialize.
With unresolved debts and stalled operations, the question remains: can Kult navigate this crisis, or will it serve as another cautionary tale in India's startup ecosystem?
Industry Insights: In a related note, Cent, a preventive healthcare startup founded in 2025, aims to enhance early disease detection through advanced diagnostic protocols. The company combines various imaging techniques and AI to create risk profiles for asymptomatic individuals.
Upcoming Developments: RentoMojo has submitted its Draft Red Herring Prospectus (DRHP) to SEBI in preparation for its IPO, marking a significant step for India’s first furniture rental company.
