Vauld's co-founder and CEO, Darshan Bathija, announced the successful approval of the startup's arrangement scheme within the courts of Singapore. This pivotal arrangement entails a transformative change for the company, ushering in a fresh CEO, a representative for creditors, and an adept scheme manager to take the reins..
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| In July of the previous year, Vauld made the decision to halt its operations, attributing this move to financial challenges and the demanding market landscape. Image for representation. |
Facing financial turbulence and a challenging market landscape, Vauld had suspended its operations in July of the preceding year. Amidst legal proceedings unfolding within Singapore's courts and mounting skepticism among creditors awaiting a bailout, the company had established a dedicated committee of creditors (CoC). This committee was tasked with aiding creditors who lacked legal representation and facilitating their input throughout the intricate business revamp. In a tweet dated August 24th, Darshan Bathija, Vauld's co-founder and CEO, delivered the eagerly anticipated news, stating, 'Vauld (Defi Payments Pte Ltd) successfully obtained court approval for its scheme of arrangement in Singapore. This pivotal scheme entails the replacement of the current board with a new CEO, a creditor representative, and a scheme manager. Customers are actively resubmitting their KYC information, with more updates set to follow shortly.' Yet, amidst these transformations, the lingering question remains: will the CoC and even the founding team maintain their roles within the startup in the wake of this transformative order?"
Founded in 2018 by Bhatija and Sanju Soni Kurian, Vauld established its headquarters in Singapore, while a significant portion of its workforce operated from India. The exchange garnered substantial support from renowned backers, including Valar Ventures—an enterprise co-founded by PayPal's visionary Peter Thiel—alongside Pantera Capital, Coinbase Ventures, CMT Digital, Gumi Cryptos, Robert Leshner, and Cadenza Capital.
As of the present, Vauld's asset portfolio approximates $330 million, juxtaposed against liabilities that total $400 million. Notably, on August 13, 2022, the Enforcement Directorate executed a freeze on the startup's bank balances, payment gateway funds, and cryptocurrency holdings, collectively valued at Rs 370 crore. This action was taken based on allegations of the company's involvement in facilitating predatory lending apps."
Previously, discussions were underway for Vauld's acquisition by London's crypto lending firm Nexo. However, the deal was abandoned in December following alleged non-responsiveness from Nexo towards Vauld's due diligence inquiries.
In a parallel trajectory, fellow participants in the Indian crypto ecosystem, like CoinDCX and Chingari, find themselves entangled in tumultuous circumstances as well. CoinDCX recently executed workforce reductions, affecting approximately 12 percent of their employees (estimated to be in the range of 70-80 individuals). Simultaneously, Chingari underwent a significant downsizing, releasing 50 percent of its workforce as reported by the media.
CoinDCX attributed these changes to shifting business priorities, while Chingari's situation is attributed to challenges in securing adequate funding.
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