Apps That Trick, Zerodha’s New Measures, and PhysicsWallah Fined

The most profitable button in Indian consumer internet may be the one users never meant to click.

That is the real story behind India’s dark pattern crackdown.

For years, startups sold convenience to consumers and growth to investors. But quietly, many also built small traps inside their apps: pre-ticked boxes, hidden fees, guilt-loaded buttons, difficult cancellations, fake urgency, misleading “free” offers and checkout charges that appeared only at the last step.

None of this looked dramatic. That was the genius of it.

A ₹10 add-on does not create outrage. A pre-selected donation does not feel like theft. A hidden platform fee does not make most users abandon the transaction. But at scale, these small nudges become real money.

PhysicsWallah is the cleanest example. According to the CCPA order cited in the report, the company collected roughly ₹2.47–2.5 crore through an auto-ticked ₹10 “PW Foundation” donation from more than 21 lakh users over 22 months. The penalty was ₹5 lakh.

That is the problem.

If a platform can collect ₹2.5 crore and pay ₹5 lakh as a fine, dark patterns are not a compliance failure. They are a business model.

This is why the issue goes beyond PhysicsWallah or McAfee. ASCI found that 52 of India’s top 53 apps used at least one deceptive design pattern. LocalCircles found that 97% of audited platforms still had dark patterns despite the 2023 guidelines and the 2025 self-audit advisory.

In plain English, this means almost every major consumer app has, in some form, tried to make users pay more, share more data, renew longer, cancel slower or feel guilty for saying no.

The startup ecosystem should be honest about this. Dark patterns exist because they improve metrics. They lift average order value. They reduce cancellation. They increase opt-ins. They make “free” users more valuable by harvesting phone numbers, emails and behavioural data.

That makes them attractive to growth teams and investors.

But it also makes them dangerous. Especially in India, where a large part of the user base is new to digital services, young, price-sensitive or not fully comfortable challenging interface tricks.

The next phase will be tougher. CCPA has moved from advisory mode to penalty mode. But penalties must match the gain. Otherwise, fines will remain a small legal expense inside a large revenue experiment.

This is also where clean design can become a moat. A company that shows the final price upfront, makes cancellation easy, asks for consent clearly and does not shame users into spending more will look boring in the short term. But it may build the one asset Indian consumer internet has quietly damaged: trust.

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.

“Aaloo Le Lo, Kandha Le Lo”: Zerodha Rolls Out New Measures To Woo Investors Amid Intensifying Competition

Zerodha is making a fresh pitch to new investors by waiving account maintenance charges for the first year and covering portfolio transfer fees from rival platforms.

The move comes as competition from players like Groww and Dhan heats up, with brokerages battling hard to attract and retain retail investors.

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“Bhari Blunder Ho Gayil Ba”: Hackers Access Contact Details Of Ultrahuman Users Via Internal Tool

Ultrahuman has disclosed a security breach after hackers gained access to user contact details through its internal analytics systems.

The attack reportedly stemmed from credentials stolen from an employee’s malware-infected laptop, with a small fraction of user wellness data also affected.

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“Rishta Wahi, Soch Nayi”: SoftBank Offloads Lenskart Shares Worth ₹2,873 Cr

SoftBank has sold Lenskart shares worth ₹2,873 Cr through a block deal, continuing its strategy of trimming holdings in mature portfolio companies.

The eyewear giant, however, has maintained strong momentum in the public markets since its listing.

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“Naya Saal Naya Maal”: Dhan Parent Raise Launches ‘Millions’ Investment App Targeting Gen Z

Dhan parent Raise has launched Millions, a new investment app aimed at Gen Z investors looking to build wealth through stocks, mutual funds, SIPs, and IPOs.

With zero onboarding and brokerage fees for direct equities, the platform is betting on India's next wave of young market participants.

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“Dand Ke Pratyakshi”: CCPA Slaps Fine On PhysicsWallah Over Dark Pattern Violations

PhysicsWallah has been fined ₹5 lakh by the CCPA for allegedly using dark patterns, including a pre-selected donation option on its platform.

The consumer watchdog said these practices violated consumer protection and e-commerce regulations, putting greater scrutiny on online user experience design.

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“Waah Kya Scene Hai”: ideaForge’s Shares Locked At Upper Circuit After Fundraise Approval

ideaForge shares hit the upper circuit and a fresh 52-week high after the drone-tech company secured approval for a fundraising plan.

The rally pushed its market value close to ₹3,900 Cr, reflecting strong investor interest in India's growing drone sector.

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“Apni Toh Jaise Taise”: Kuku Files Draft Papers Confidentially For ₹3,500 Cr IPO

Audio-content startup Kuku has confidentially filed draft papers for a ₹3,500 Cr IPO, reportedly targeting a valuation of up to ₹15,000 Cr.

The company plans to use the proceeds to strengthen its AI capabilities, content library, and expansion across markets.

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“Kar Chale Hum Vida”: Pine Labs-Owned Setu’s Cofounder Nikhil Kumar Steps Down

Nikhil Kumar has stepped down as cofounder of Setu, the fintech infrastructure startup acquired by Pine Labs in 2022.

While his next move remains unclear, the departure marks the end of a key chapter for one of India's prominent API-led fintech platforms.

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1. AI startup TrueFan has raised $10 Mn to fuel its expansion into new markets as it doubles down on enterprise AI solutions. Originally launched as a celebrity engagement platform, the startup has rapidly scaled to serve over 100 businesses since pivoting last year.

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2. Fintech startup WeRize has raised $7 Mn from existing investors to broaden its product suite and fuel growth. The fresh capital comes as the company touts sustained profitability and strengthens its position in India's financial services market.

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3. FirstClub has raised $55 Mn in a Series B round to accelerate store expansion and broaden its product portfolio. The startup plans to add more outlets while pushing into categories such as home, kitchen, gifting, and general merchandise.

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4. ideaForge’s board has approved plans to raise up to ₹500 Cr through multiple funding routes, including a QIP. The move comes after the drone-tech company returned to profitability in the March quarter.

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5. Healthy snacking startup Phab has raised $4 Mn in a Pre-Series A round to accelerate growth and expand its reach. The brand plans to use the funds for distribution, market expansion, and strengthening its leadership team.

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6. The Sweet Change has raised ₹1.7 Cr in a pre-seed round led by Rebalance to fuel its next phase of growth. The startup plans to use the fresh capital to launch new products and strengthen its distribution network.

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