Why This Startup Rejected ₹30 Lakh Despite Needing Funds?

Khushi Bhatia

| 2025-09-03 | Founders Corner

The Mind and Company has closed ₹1.2 crore of a planned ₹1.5 crore raise after declining a ₹30 lakh commitment from one of four investors. Founder Karthik Manikonda says the investor asked the team to “stop teaching” as a condition to invest, an ask the startup rejected on principle.

The Funding Update

In a public post, founder Karthik Manikonda said the company had earlier announced a ₹1.5 crore round from four investors. Of that, ₹1.2 crore has been received. The remaining ₹30 lakh was tied to a condition from one investor who, according to Manikonda, asked the founders to stop teaching in order to proceed.

“Stop teaching else they won’t invest in The Mind and Company,” Manikonda wrote, adding that the company chose to walk away from the cheque rather than accept the condition.

The Flashpoint: Teaching vs. Terms

Manikonda said the team has been open about teaching, framing it as purpose-driven work that does not compromise the startup’s operations. He described teaching as an activity that sharpens thinking, keeps the team grounded, and develops skills that make them better founders.

“So when the investor told us to stop teaching or walk away from the ₹30 lakh investment, we had to make a choice. And we chose what we have always believed in,” he wrote. “We turned down the cheque.”

Where the Round Stands

With the ₹30 lakh tranche declined, the company says it has closed ₹1.2 crore and is now seeking to replace the ₹30 lakh with a backer who aligns with its stance.

The Ask to Investors

The post positions the search as an appeal to investors who bring capital and conviction, those who see investing as more than a bet on a model, but a decision to back founders with principles. As Manikonda put it, it’s “about backing real people with real principles.” He also indicated that direct messages are open for interested investors.