Ravi Gururaj, one of the most well-known faces when it comes to the startup ecosystem in India, has found his latest startup Qikpod in legal mire. Qikpod is a smart locker system that can be used by e-commerce companies for smarter deliveries.
To know more about the fallout, read http://www.wazzeer.com/articles#ravi-gururaj-s-qikpod-faces-legal-trouble-over-equity-issues
Earlier the Bangalore Civil court passed an order retraining Gururaj from launching the product and also from allotting new shares. But Gururaj approached High court and got permission to launch his product. Sources say that the reason for the fallout between Gururaj and Ray was a lack of legal documentation of equity shares, etc, and relying solely on e-mail correspondence. This, experts say, is a trend that is plaguing many start-ups, and causing their downfall. Ravindra MK, co-founder of BHive, said “Often startup founders do not do documentation work early on. They believe they should start work on the product first and look at documentation later. However good a friend the co-founder is, it always makes sense to have share-holder agreements and agreements between the founders done at the very beginning.” However, Bharathi Jacob, co-founder Seedfund, believes that the most important thing between co-founders is trust. Jacob said, “It is very important that the co-founders discuss and decide each and every function of the company: From how to hire, whom to hire, what investments, what equity, etc. Everything needs to discussed and known to the founders. They should jointly take decisions.
However, making a legal document shows that complete trust between the founders is not present. I do not believe that a legal document is important. I feel that an e-mail conversation is more than enough.” It is a summarization of an article from Bangalore Mirror.