Layoffs · Commerce & Consumer Brands

Kult stops paying staff amid unpaid dues

By Startup Enthusiast · 6 April 2026

What they do

Kult is a beauty marketplace platform offering AI personalised skincare recommendations for Indian skin tones

The company has not paid salaries since November 2025 and owes nearly ₹40 Cr in vendor and employee dues

This follows a failed $20 Mn Series A raise where only partial funds were received by the startup

Kult has stopped paying salaries to approximately 80-100 employees since November 2025.
The company faces outstanding liabilities of nearly ₹40 Cr including vendor dues and bonuses.
Only 10-15 senior staff close to founders continue to receive salaries while others are unpaid.
Operations ceased in Gurugram in mid-January 2026 after the Mumbai office shut down late 2025.
Founders previously announced a $20 Mn Series A round led by M3M Family Office in April 2025.
Actual funds received were only around ₹50 Cr ($5.3 Mn) delivered in small tranches throughout 2025.
Investor Venture Catalysts denied participating in the deal despite being named in press releases.
Internal communications suggest founder Rahul Yadav advised legal action against investor M3M Family Office.

The crisis highlights risks in startup funding when promised capital does not fully materialize.
Discrepancies between announced raises and actual receipts create severe operational cash flow issues.
Founder background includes previous ventures linked to current entity raising governance concerns.

Kult operates as a beauty marketplace platform connecting consumers with premium brands.
The service uses AI personalised skincare recommendations tailored specifically for Indian skin tones.
It maintains a visual catalogue designed to help users find suitable beauty products online.
The company aimed to onboard 700 premium brands by the end of 2025.
Target metrics included achieving 10,000 daily orders and hiring over 200 new employees.
FY25 revenue was reported at just ₹27.5 Lakh against losses of ₹3.2 Cr.
The business model relies on digital engagement rather than physical retail stores.

M3M Family Office (lead) — A family office entity that led the announced Series A round.
Venture Catalysts (participant) — Named in press releases but denied investing in the company.
Info Edge (existing) — An investor in Kult caught in the liability chain disputes.

Product: Beauty tech platform using AI to deliver personalized skincare recommendations and curated product catalog
Customers: Individual consumers seeking personalized skincare solutions and beauty products
How it makes money: B2C e-commerce marketplace with AI-driven personalization and curation
What sets it apart: Visual catalog displays products on diverse Indian skin tones, backed by insights from 300+ global beauty experts