What began as a promising journey for a small Indian startup in the fast-growing fields of fintech and SaaS development quickly unraveled into a cautionary tale of deception, exploitation, and the darker side of cross-border tech partnerships. In a Reddit post, a user who claims to be a start-up founder shares his experience.
The startup, composed of a lean team of engineers and marketers, had made its name by supporting early-stage companies with minimum viable product (MVP) development, growth hacking, and digital marketing. Their client base included both Indian and international startups, and their reputation was steadily growing—until a lucrative offer from Southeast Asian clients changed everything.
According to a firsthand account shared by a founding member on Reddit, the startup was approached by clients from Singapore and the Philippines via an online platform. The clients appeared legitimate, fluent in business jargon, and backed by detailed proposals. They offered high pay—₹3 to ₹5 lakh per month—for relatively simple tasks like UI design, frontend development, and marketing campaigns.
Payments came on time, and the projects seemed straightforward—at first.
But soon, the real agenda became clear. The foreign “investors” began engaging the startup’s leadership in informal meetings, dubbed “ChitnChat” calls. During these conversations, they proposed funding the Indian team to start a new venture—with no product or market validation required. The offer: $1 million in initial investment to “dominate the Indian market.”
The dream quickly soured.
As the work progressed, the Indian team began to notice patterns, the backend systems were always pre-built, and they were merely tasked with re-skinning frontends and changing domain names daily. Upon closer inspection, the projects revealed a troubling reality—many of the applications were clones used for illegal or unethical purposes.
“These were gambling apps disguised as games, predatory loan apps charging exorbitant interest, and fake crypto wallets,” said the founder. “They were designed to be live just long enough to exploit users before being replaced under a new identity.”
When the Indian team raised ethical concerns, the response from the clients was flippant. One project manager allegedly said, “Indians love shortcuts to becoming crorepatis. We’re just giving them what they want.”
The startup immediately severed ties, but the damage was already done. Their online presence—including Upwork, LinkedIn, and their own website—was taken down. Stripe, Payoneer, and PayPal accounts were frozen, and even their U.S.-registered C Corporation was locked. Their co-founder faced repeated pressure to register more companies for the same clients.
Most devastatingly, legitimate clients backed out, not wanting to be associated with the scandal. “There is a growing grey market in India,” the founder wrote. “Fake fintech firms, crypto scams, gambling disguised as gaming, and sketchy lending operations are exploiting India’s developer talent and regulatory gaps.”
“You should never run a client’s company under your own wing”
The internet quickly reacted to the post. One user emphasised a key legal safeguard, “Limitations of liability. You should never run a client’s company under your own wing.” Another offered a red flag to watch for in future partnerships: “If they lead with money, slow down. Legit partners talk product, users, and risk. Scammers throw numbers first to short-circuit your filter.”
The post struck a chord with other entrepreneurs who have faced similar situations. “Thanks for putting this up. In the startup world, there are lots of scammers. We were scammed in 2020 by someone promising to invest in us,” shared one founder. However, not all responses were sympathetic. One user questioned the team’s awareness: “I mean, how could you not know what they were doing with the front end? Seems to me you were fully complicit.”
Others applauded the team’s eventual decision to cut ties: “Scary to hear this, man. Great that you stood your ground and said no.” But the story also stirred frustration at broader systemic issues. “They played it well—used Indian IT strength to loot Indians. And the government is just allowing these gambling apps. Why can’t these be banned?” one user asked.