Chennai-based meat delivery startup Fipola Retail India Pvt. Ltd. has suddenly closed down after four years, leaving 19 employees without jobs and pay. The CEO, Sushil Kanugolu, announced the closure during an unexpected video call with all staff.
“We’ve completely run out of money. All of our investors have pulled out.”
This statement, made without prior notice or contingency planning, stunned staff, who were left scrambling to process the abrupt end of their employment. The statement reflects employee testimony, not a direct quote from Sushil Kanugolu himself.
Sudden Shutdown Without Severance or Salary
Workers in Bengaluru, mostly technical professionals, were unexpectedly called to a video conference. They learnt that the startup had collapsed during this meeting. Employees were informed that their monthly pay cheques would not be paid, but there was no notice of layoffs. A former employee posted about this incident on Reddit, and it has already gained a lot of attention.
“In that meeting, he told us… the company had completely run out of money. And just like that, a four-year-old startup was gone.”
(Reddit thread: r/developersIndia)
Employee Backlash and Social Support
The lack of warning and financial dues triggered anger and fear among staff. Some stated they had no signs the company was in crisis. Others questioned Fipola’s leadership ethics. Social media flooded with support, with users offering job leads, resume help, and legal advice.
A Fall from Prominence
Founded in 2016 and restructured in 2021, Fipola raised a lot of funding and grew quickly in southern India. However, rising costs, challenges with meat supply regulations, and slower funding led to its downfall. Insiders said recent talks with investors failed, pushing the company into financial trouble.
Lessons for Startups and Employees
Fipola’s collapse is a warning for India’s startup scene. As funding becomes harder to get, startups need to be transparent and ensure fair offboarding of employees. Employees should keep track of their payments, review their contracts, and have some savings ready.
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