SphitiCap’s broken promises leave startups in the lurch
SphitiCap, an early-stage venture capital (VC) fund, has been accused of cheating its users. It had claimed to launch a $500-million fund in October 2022 and also promised to give $50 million (around Rs 400 crore) to eight startups. But so far, it has neither closed its first fund nor registered it with SEBI. As a result, its portfolio startups are facing a lot of trouble.
Some of them are Garuda Aerospace, PayVeda, Corrit Electric, ClearDekho and 6Degree.
SphitiCap had promised to give them money, but even after a year, they have not received a single penny. This has made it difficult for these startups to grow their business and they are trying to raise temporary capital from other investors.
SphitiCap’s manager Pallav Kumar Singh has admitted to Moneycontrol that he has not given any money to anyone yet.
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