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Founder Faces ‘Absurd’ ₹40 Crore Lawsuit Over ₹6 Lakh Investment; Internet Rallies Support
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News18•25-09-2026, 14:30
Founder Faces ‘Absurd’ ₹40 Crore Lawsuit Over ₹6 Lakh Investment; Internet Rallies Support
- •A founder is embroiled in a High Court legal battle, facing a ₹40 crore claim from a former co-founder over an initial ₹6 lakh investment.
- •The dispute stems from a Web3 project that never launched due to a crypto market downturn, with the founder handling development and the co-founder providing capital.
- •The founder claims the ₹40 crore figure for ‘loss of revenue’ was derived from an optimistic projected revenue slide in their original pitch deck.
- •The founder emphasized that their agreement included an arbitration clause, no refund clause, and no guaranteed returns or timelines.
- •Reddit users have largely supported the founder, calling the ₹40 crore claim ‘absurd’ and advising legal counsel, while some questioned the investor's understanding of startup equity.
Key Questions Answered
A former co-founder filed a high court claim seeking ₹40 crore for alleged loss of revenue after a Web3 project failed to launch. The founder explained that this massive figure appeared to be derived from an optimistic projected revenue slide in the original business pitch deck.
The partners signed a simple 50-50 co-founder agreement where one invested ₹6 lakh as capital while the other handled all the remaining work. The agreement included an arbitration clause, no refund clause, no guaranteed returns, and no specific timeline.
The business could not move forward or launch because the crypto market suffered a major downturn, falling off a cliff after the partnership was formed.
