Zyber 365 Technologies was relatively unknown until July 2023. The company suddenly made headlines by announcing a massive $100 million funding round, propelling it into the prestigious unicorn club with a valuation of $1.2 billion. However, recent findings raise questions about its legitimacy and financial transparency.
The Rise of Zyber 365
Zyber 365 Technologies, a Web 3.0 AI start-up, claimed to be India’s and Asia’s fastest unicorn, achieving this status within just three months of incorporation. According to market intelligence platform Tofler, the company was registered in India on July 20, 2023, while its London-based parent firm was established only two months earlier, in May 2023.
The announcement gained traction as becoming a unicorn often attracts more investors. However, a closer look into publicly available documents reveals a lack of substantial financial records and raises concerns about its operations.
Financial Discrepancies and Company Records
Despite claiming to be a billion-dollar company, Zyber 365’s Indian subsidiary has an authorized capital of just Rs 15 lakh and a paid-up capital of Rs 1 lakh. The registered address is listed as “c/o Manmohan Singh, village Tharoli, Hoshiarpur City, Punjab,” with offices in Sahibzada Ajit Singh Nagar, Punjab, and Vastrapur, Ahmedabad. Meanwhile, the company website claims its global headquarters is in London.
The Indian entity has three directors: Pearlpreet Singh Kapur, also known as Pearl Kapur, as the Founder and Chairman, and Sunny Piyushkumar Vaghela. Another director, Surdas Puthem, joined on September 2, 2023. However, Vaghela recently clarified that he had resigned from Zyber 365 on May 19, 2024, due to unfulfilled commitments regarding product development and funding.
Resignation and Internal Conflicts
Vaghela shared his resignation letter, addressing Kapur, with Business Today. The letter highlighted that Zyber 365 failed to execute its development plans and obtain promised funding. He also demanded the removal of his name from the company’s records and requested that his cybersecurity firm, TechDefence, no longer be associated with Zyber 365.
The Questionable $100 Million Funding
The primary investor in Zyber 365’s funding round was the London-based SRAM & MRAM Group, chaired by Sailesh Lachu Hiranandani. The group also announced a $100 million investment in the cargo division of SpiceJet, known as SpiceXpress and Logistics.
The announcement mentioned that SRAM & MRAM had invested $3.64 billion in India’s semiconductor industry and was expanding its presence in aviation and logistics. However, there is no evidence of actual funds being transferred into SpiceXpress. When questioned, a SpiceJet spokesperson confirmed, “No investment has been made by SRAM & MRAM Group in SpiceXpress.”
Lack of Response from Zyber 365 and Its Investors
Multiple attempts to contact Zyber 365’s founder, Pearl Kapur, through official and personal emails have gone unanswered. On social media, Kapur portrays himself as India’s youngest billionaire at just 27 years old. Meanwhile, emails sent to SRAM & MRAM Group regarding their investments in Zyber 365 and SpiceExpress have also received no response.
Unanswered Questions and the Future of Zyber 365
Despite its bold claims, Zyber 365 has not filed any financial reports with India’s Ministry of Corporate Affairs. The absence of proper documentation and transparency raises doubts about the authenticity of its unicorn status. Until the company or its investors provide clear proof of funding, Zyber 365 remains an enigma in India’s start-up ecosystem.
