Apple Killed Vibely, Crisis deepens at WinZO, and Zoho Goes Sovereign

Vibely was a bad product to defend.

That may sound harsh, but Mohalla Tech seems to have understood it quickly. The moment Apple removed Vibely from the App Store, the company did not start a long public fight. It quietly killed the app across all channels.

That was not weakness. That was common sense.

Vibely sat in one of the dirtiest corners of consumer internet: paid conversations with strangers. The company called it “trusted social interactions,” but let’s not dress it up too much. The app allowed users to talk to creators through audio and video calls, while hosts could earn money through calls and gifts.

This kind of model always looks innocent in a deck. Social discovery. Creator monetisation. Community. Companionship.

In reality, it can slide very quickly into flirtation, adult content, harassment, fake intimacy and safety nightmares. Once money enters private one-on-one conversations, the product becomes much harder to control.

Apple saw that risk and acted.

This is not happening only to Vibely. Omegle shut down after years of criticism and legal pressure. OmeTV faced action in Australia over child-safety concerns. Google has removed apps like Chamet from the Play Store over user-generated content issues. Sugar dating apps were also pushed out because platforms did not want to host businesses built around paid intimacy.

Vibely may not have been exactly the same as these apps, but it was close enough to make Apple uncomfortable.

That is the real lesson.

In today’s internet, Apple and Google are not just app stores. They are private governments. They decide which business models are allowed to live. Indian founders may hate this, but they cannot ignore it.

Mohalla Tech also had no real reason to fight. In FY25, it cut adjusted EBITDA losses by 72%, from ₹793 crore to ₹219 crore, while revenue stayed almost flat at around ₹723 crore. This is a company trying to look disciplined again.

Why risk that for a small, messy app with low revenue and high policy risk?

The smarter move was to bury Vibely and put energy behind Moj and QuickTV, where content is easier to control and advertisers are less nervous.

Vibely’s death is not a tragedy. It is a reminder.

Not every engagement-heavy product is worth building. Some products grow because they are useful. Some grow because they exploit loneliness, curiosity and boredom.

The second category may get downloads. But sooner or later, platforms, regulators or public outrage catch up.

Mohalla Tech did the right thing by killing Vibely. The mistake was building such a risky side bet in the first place.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Ab Bhagwan Hi Maalik Hai”: WinZO Crisis Deepens Amid Unpaid Employees And Failed New Bets

WinZO is reportedly facing a deeper crisis, with nearly 130 employees yet to receive salaries since January. The gaming startup is dealing with frozen bank accounts, employee exits and pressure from its real-money gaming business disruption.

The company has tried new revenue streams including short dramas, digital gold and stockbroking, but traction remains weak.

Read more here

“Server Bhi Desi, AI Bhi Sasta”: Zoho Launches In-House Server Nathu La

Zoho has launched Nathu La, an indigenously designed server aimed at reducing AI inference costs. The company claims the server can deliver 20-30% lower total cost of ownership and up to 18% lower power consumption.

Zoho is positioning Nathu La as part of a broader full-stack tech ambition, from hardware layers to software applications.

Read more here

“Beta, Tumse Na Ho Payega”: Instamart’s Share Drops From 34% To 21% In Two Years

Swiggy Instamart’s share among the top three quick commerce players has fallen from 34.3% in FY24 to 20.9% in FY26. In FY26, Blinkit processed 916.6 Mn orders, Zepto 640.2 Mn, and Instamart 412.2 Mn.

The numbers show quick commerce is becoming a Blinkit-Zepto-led race, even though Instamart continues to grow in absolute order volume.

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“Neysa Ko Tech Guru Mila”: Former Wipro CIO Anup Purohit Joins As Strategic Advisor

AI infrastructure startup Neysa has appointed former Wipro CIO Anup Purohit as strategic advisor. Purohit brings more than 30 years of experience across Wipro, YES Bank, RBL Bank, Barclays and JPMorgan.

He will advise Neysa’s leadership on enterprise technology priorities and support adoption of Velocis, the company’s AI Acceleration Cloud platform.

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“AI Ke Liye Naya Kanoon Chahiye”: Ashwini Vaishnaw Says IT Act Era Is Over

Union IT minister Ashwini Vaishnaw said India needs a new legal framework for AI because the IT Act was built before modern AI technologies. He said the government is consulting industry stakeholders to balance innovation with user safety.

The comments come amid rising concerns around deepfakes, misinformation and cybersecurity risks. India has already tightened rules around AI-generated content, including takedown timelines and proposed labels for AI-generated material.

Read more here

“Profit Booking Ki Chamkili Sale”: IvyCap, Accel And 360 ONE Offload ₹243 Cr BlueStone Shares

IvyCap Ventures, Accel and 360 ONE offloaded 46.4 Lakh BlueStone shares worth ₹242.8 Cr through open-market transactions. IvyCap sold the biggest chunk at ₹136.7 Cr, while 360 ONE and Accel sold shares worth ₹55.1 Cr and ₹51 Cr, respectively.

The block deals come after BlueStone’s stock rose on stronger financials and bullish brokerage views.

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1. Exponent Energy has raised ₹200 Cr in a Series B2 round co-led by 360 ONE Asset and TDK Ventures, with Hitachi Ventures and existing investors participating. The capital will support R&D, new vehicle categories and geographic expansion.

   Read more here

2. Mygate has secured ₹225 Cr from Dharana Capital through primary capital and secondary share sales. The company will expand its gated community footprint, strengthen its platform and target 10 Mn homes over the coming years.

   Read more here

3. Hoola Health has raised $5 Mn, about ₹47.6 Cr, led by Peak XV’s Surge, with W Health Ventures and angel investors participating. The paediatric healthcare startup will expand its clinic network across Bengaluru, Hyderabad and Delhi NCR.

   Read more here

4. Uni Seoul has raised ₹35 Cr in a Series A round co-led by Riverwalk Holdings and Sauce.vc, with Panthera Peak Ventures and angel investors participating. The D2C lifestyle startup will expand stores, enter quick commerce and strengthen supply chain.

   Read more here

5. HyperNorm AI has raised $2.2 Mn, about ₹19.5 Cr, in seed funding from Capital 2B, SenseAI Ventures, Boundless Ventures, iOPEX Technologies and angel investors. The wealthtech startup will build product, expand globally and strengthen AI research.

   Read more here