Kult Undone Again, Zaggle CFO Quits & More

Kult Undone Again, Zaggle CFO Quits & More

In a dramatic turn of events, the beauty marketplace Kult is once again facing a full-blown crisis. The company, which had previously struggled with operational issues and financial instability, is now embroiled in a war with its primary backer, leading to operations coming to a grinding halt and employees going unpaid for months. This latest meltdown raises questions about the future of the controversial startup and its ability to survive the allegations and challenges it is currently facing.

The Kult Whirlpool: A Turbulent Ride

In April 2025, Kult announced a $20 million (₹185 crore) Series A round led by the M3M Family Office, which was supposed to clear its previous liabilities and enable the company to scale up to over 10,000 daily orders. However, sources indicate that only about ₹50 crore actually materialized. This new infusion did not reset the business but merely extended the runway for the governance problems to resurface.

Troubles Emerge: A Collapse in Communication and Payments

By December 2025, the cracks started to appear. Salaries stopped, vendors were left unpaid, and employees claimed that only a small inner circle continued to receive payments. The company shut its Mumbai office and moved staff to Gurugram, further disrupting operations. Internal communication broke down, and official email access was revoked for several staff members, leaving them in the dark about the company's direction.

The Blame Game: A Web of Silence and Allegations

As pressure mounted on Kult, CEO Karishma Singh remained silent, while her husband Rahul Yadav, the co-founder of Housing.com, allegedly pushed Kult employees to pursue their dues directly from M3M. The investment firm, in turn, distanced itself from the matter and announced a financial audit to probe the allegations. Meanwhile, the numbers tell a bleak story about Kult's business model. Despite raising roughly ₹50 crore in tranches, Kult's FY25 revenue was just ₹27.5 lakh, with losses of ₹3.2 crore.

Sources claim that the company relied heavily on debt and even explored inventory financing to chase scale, but these plans depended on guarantees that never fully materialized. With liabilities unresolved and operations stalled, the future of Kult hangs in the balance. Will the company be able to weather this latest round of allegations, or will it become another cautionary tale in India's startup landscape?

Zagle CFO Quits: Another Shock to the Fintech Sector

In a separate development, the listed fintech SaaS company Zaggle has seen its chief financial officer resign from the company. The departure of the CFO adds to the mounting challenges faced by the sector, which has been grappling with economic uncertainties and the impact of regulatory changes. Zaggle, which has been working to expand its operations and diversify its revenue streams, will now need to navigate these challenges without the guidance of its CFO.

As both Kult and Zaggle face their respective crises, the Indian startup and fintech ecosystems are being tested in ways that highlight the need for robust governance, clear communication, and sustainable business models. The outcomes of these challenges will undoubtedly shape the trajectory of these companies and the broader industry in the years to come.