The Culture Crisis, ICRA Downgrades Ola, and Cars24 Cofounder Steps Down

Indian startups are no longer fighting only for capital. They are fighting with their own people.

The latest examples make that clear. A Gurugram founder fired an employee on WhatsApp for skipping an in-person event. A Bengaluru founder claimed he replaced a developer with AI in four days. Different stories, same signal: “efficiency” is now being weaponised.

This shift has a clear trigger.

Funding fell to about $11 billion in 2025. Easy money disappeared. Investors began demanding burn control, profitability and revenue per employee. Suddenly, large teams looked like inefficiency.

That is where the founder-talent war begins.

Founders want “high agency” employees who behave like owners. Employees are asking a simpler question: where is the ownership? The Gen Z line captures it: give me 50% equity, I will act like a founder. Until then, I am the babysitter, and my shift ends at 7 PM.

This is not attitude. It is reality.

The old startup bargain promised learning and upside. After Byju’s, Dunzo and others, employees have seen the downside: layoffs, delayed salaries, worthless ESOPs. The trust gap is real.

AI is widening it.

With 41% of code already AI-generated, some founders believe skills are replaceable. That belief is risky. AI can ship demos fast, but not always reliable systems. The founder who cuts engineers today may face technical debt tomorrow.

The bigger cost is trust.

Mentions of misaligned leadership have jumped 149%. Distrust is rising. Only 28% of appreciated employees look for jobs, versus 71% who feel undervalued. Replacing one employee costs 1.5x to 2x salary. “Toxic efficiency” is expensive.

And talent has alternatives.

GCCs now offer stable roles in AI, cybersecurity and product, with attrition around 12-14% versus 25% plus in startups. For top talent, the choice is practical: stability over chaos.

Founders, meanwhile, are under strain. Around 62% report burnout and 72% face mental health challenges. The pressure is real, but it cannot justify poor behaviour.

The ecosystem needs a reset.

Lean teams are fine. AI is necessary. High standards matter. But public firings and “founder mindset” without founder-level upside will push talent away.

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.

“Yeh Nainsaafi Hai”: Ather CEO Tarun Mehta Slams Centre’s ‘No Startups’ PLI Stance

Ather Energy CEO Tarun Mehta has taken a sharp swipe at the Centre’s decision to keep startups out of the auto PLI scheme, calling it a setback for India’s EV momentum.

The policy, which reportedly favors “global champions” over emerging players, risks sidelining electric-first innovators at a crucial growth stage. In Mehta’s view, excluding startups now could quietly undercut the very ecosystem the policy aims to scale.

Read more here

“Ye Nahi Ho Sakta”: ICRA Downgrades Ola Electric’s Rating Amid Rising Competition, Declining Sales

ICRA has downgraded Ola Electric, citing weak sales performance and rising competitive pressure in the EV space.

While registrations did rebound sharply in March 2026, the agency flagged earlier underperformance as significant enough to weigh on its outlook. Improving service metrics and recent corrective moves suggest the company may be inching back toward operational stability.

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“KitKat Break Banta Hai”: Another Exit At IPO-Bound Cars24 As Cofounder Mehul Agarwal Steps Down

Another senior exit at Cars24 as cofounder Mehul Agarwal steps away from his operating role after an 11-year run, just as the company gears up for its IPO.

The move follows closely on the heels of cofounder Gajendra Jangid shifting into an advisory position, hinting at a broader leadership reshuffle. For a company nearing public markets, the timing raises quiet questions about continuity behind the scenes.

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“Ho Raha Maharashtra Nirman”: Maharashtra Approves AI Policy, Eyes ₹10,000 Cr Investments

Maharashtra has cleared its AI Policy 2026, aiming to draw ₹10,000 Cr+ in investments and generate 1.5 lakh jobs by 2031.

The plan includes a dedicated AI Mission, five innovation cities, and multiple Centres of Excellence to build sector-specific capabilities. Meanwhile, Goa has floated its own draft AI policy, opening it up for public feedback starting May 4.

Read more here

1. Ctruh has raised $2.5 Mn in a round co-led by IPV and Avinya Ventures to scale its enterprise XR toolkit. The startup plans to double down on R&D, product innovation, and global expansion. Its offerings span 3D walkthroughs, AR demos, and immersive configurators.

   Read more here

2. Kimbal Technologies has raised $22 Mn (~₹210 Cr) in a Series B round led by GEF Capital to scale its smart grid solutions globally. The funds will go toward product development across energy management while strengthening manufacturing and pushing international expansion.

   Read more here

3. IPO-bound Kissht has secured ₹278 Cr from anchor investors at ₹171 per share, with strong participation from domestic mutual funds. Its public issue opened on a steady note, seeing about 20% subscription on Day 1, signaling cautious but active investor interest.

   Read more here and here

4. Oolka has raised $14 Mn in a Series A round led by Accel, with backing from existing investors including Lightspeed and Z47. The startup will use the funds to scale its AI capabilities and deepen partnerships with banks and NBFCs.

   Read more here

5. Novio has raised ₹100 Cr in a Series A round led by Cornerstone Ventures, with participation from multiple institutional investors. The funding marks a strong vote of confidence as the startup looks to scale its fintech offerings.

   Read more here