News · Commerce & Consumer Brands

Gully Labs employee misused discount codes

By Startup Enthusiast · 23 February 2026

What they do

Gully Labs is a Delhi-based sneaker brand

A customer support employee created 100% discount codes for orders worth ₹2 lakh

The incident highlights weak internal controls in small startups

Gully Labs, a Delhi sneaker brand, alleges a recently hired customer support employee created 100% discount codes.
The employee used the codes for orders worth about ₹2 lakh, shipped to friends, then quit within a week.
Founder Arjun Singh posted the incident on X, saying the employee joined a couple of months ago.
When confronted, the employee initially cooperated and returned about half the products; the rest were already used.
The former employee later sent legal notices accusing the firm of harassment after it sought return of products or reimbursement.
Gully Labs is strengthening backend controls, including tighter permission settings, to prevent misuse.

The incident sparked social media debate, with users pointing to weak internal controls as the real issue.
One user commented that one bad hire costs ₹2 lakh plus legal fees and leads to enterprise-level access controls with 10 employees.
Another user advised keeping guardrails in place and being vigilant, not blindly trusting anyone.

Gully Labs is strengthening backend controls, including tighter permission settings.
The company aims to prevent misuse of internal systems.

Product: Delhi NCR-based startup that sells sneakers inspired by Indian motifs
Customers: Consumers buying sneakers and casual footwear
How it makes money: Sells sneakers directly to consumers through online and offline channels
What sets it apart: Designs premium sneakers inspired by Indian culture and motifs