Curious case of Pearl Kapur: The self-proclaimed billionaire behind Zyber 365

On his Instagram profile, Pearl Kapur brands himself as "India's youngest billionaire," a title he embraces while carefully sidestepping questions about the legitimacy of his company's meteoric rise.

In Short

• Pearl Kapur’s billionaire claim draws scepticism over company transparency
• Rapid rise of Zyber 365 prompts doubts about legitimacy
• Zyber 365's unicorn status raises questions

It’s hard to imagine that a company virtually unknown before July 2023 could quickly declare itself one of India’s unicorns. Yet, Zyber 365 Technologies, a self-proclaimed Web 3.0 and AI startup, did just that.

With founder Pearl Kapur at the helm, the firm claimed to have secured a whopping $100 million in Series A funding, catapulting its valuation to a staggering $1.2 billion—a claim that raised as many eyebrows as it did headlines.

Pearl Kapur, who declared himself "India's youngest billionaire" at just 27, became the face of this meteoric rise. But the timing of Zyber’s ascension was curious.

A Business Today report, citing business intelligence platform Tofler, said Zyber 365 Technologies was incorporated in India on July 20, 2023, just a week before it announced becoming a unicorn. Even more intriguing, its London-based parent company had only been established two months earlier, in May 2023.

The company claimed that this rapid rise made it “India and Asia’s fastest unicorn” and “India’s 109th unicorn.” For a brief moment, the Indian startup ecosystem buzzed excitedly, as unicorn status generally attracts even more investors.

But over a year later, questions linger around Zyber 365’s operations, funding, and credibility.

Closer look at Zyber 365 Unicorn Status

An examination of Zyber 365’s publicly available documents reveals little about the company’s actual activities or financial health, as per the Business Today report. The company’s registered capital is notably modest—just Rs 15 lakh in authorised capital, with a paid-up capital of Rs 1 lakh.

Its Indian headquarters are listed at a modest location in Hoshiarpur, Punjab, with additional offices in Sahibzada Ajit Singh Nagar and Ahmedabad, Gujarat, added the report.

According to Zyber 365's website, the global headquarters is purportedly located in London. The Indian arm of Zyber 365 lists three directors: Pearl Kapur, who goes by Pearlpreet Singh Kapur and holds the title of Founder & Chairman; Sunny Piyushkumar Vaghela, a co-founder and Chief Information Officer; and a third director, Surdas Puthem, who joined the board in September 2023.

However, Vaghela has reached out to IndiaToday.in to clarify that he is no longer a part of the company. "I wanted to take a moment to personally confirm that I resigned from the company some time ago and have already submitted my DIR-11 form for resignation. Unfortunately, my resignation has not yet been formally processed by the company or Pearl, which is why my name still appears on the MCA website. However, the cessation date is accurate," Vaghela explained.

He further noted that his DIR-11 form has already been accepted by the Ministry of Corporate Affairs (MCA). It’s important to mention that when a director resigns, a DIR-11 form must be submitted to the Registrar of Companies (RoC) to officially document the resignation.

Vaghela also highlighted that the company's name has been changed to Zedgo Software Technologies Private Limited. India Today has confirmed this update via the MCA's website, which indicates that the company currently has three directors: Falgun M. Rathod, Arjun Kuwar, and Surdas Puthem. Pearlpreet Kapur (Pearl Kapur) serves as the managing director of the entity.

Unicorn without a paper trail

Despite its claim of having secured a monumental $100 million investment, Zyber 365 has not filed any financial reports with the Ministry of Corporate Affairs. The lack of transparency has fuelled scepticism, especially regarding the company’s relationship with SRAM & MRAM Group, the entity that supposedly led Zyber’s funding round.

SRAM & MRAM, chaired by Sailesh Lachu Hiranandani, is a London-based group that claimed to have made substantial investments in India. These include a $3.64 billion semiconductor fabrication plant and a $100 million investment in SpiceXpress, the cargo division of SpiceJet.

However, there’s a catch: over 16 months later, no funds have materialised from SRAM & MRAM into SpiceJet’s cargo venture, reported Business Today. SpiceJet has confirmed in a brief statement that no investment has been made by the group, despite an earlier press release heralding the partnership.

Missing millions

The same cloud of doubt surrounds Zyber 365’s funding. According to the Business Today report, neither Kapur nor Hiranandani have provided further details or proof of the promised investment. Repeated requests for clarification from both Zyber 365 and SRAM & MRAM have gone unanswered.

This leaves the public—and potential investors—wondering if Zyber 365’s unicorn status is based on more than just hot air.

Despite the opaque financials, Kapur remains active on social media.

On his Instagram profile, he brands himself as “India’s youngest billionaire,” a title he embraces while carefully sidestepping questions about the legitimacy of his company’s meteoric rise.

While his public persona is one of success, the reality of his empire’s foundations remains uncertain.

Zyber 365’s story reflects a broader narrative about India’s startup ecosystem, where unicorns are celebrated, often without thorough scrutiny.

With India's economy booming and its tech sector attracting significant foreign investment, the hype around startups has sometimes overshadowed the need for due diligence. Companies like Zyber 365 seem to be riding this wave, claiming unicorn status without delivering on their promises.

The fate of Zyber 365 remains uncertain. Will this self-proclaimed billionaire and his startup live up to the hype, or is it all just smoke and mirrors? As questions swirl around its credibility, the future of Zyber 365 will depend on whether it can transform its ambitious claims into tangible results.

(Inputs from Krishna Gopalan/Business Today)