Shark Tank India Fame Startup Loses Money After New Hire Fraud with 100 Percent Discount Code for Personal Orders

A dishonest customer care worker at Gully Labs manufactured 100% discount codes for her own purchases, costing the firm Rs. 2 lakh.

Using 100% discount coupons, a new hire at the company created a fraud order for footwear, according to the media reports. The incident’s aftermath was described in a tweet on X (formerly Twitter) by Arjun Singh, the co-founder of the Indian sneaker company Gully Labs. He claimed that after the employee was apprehended, he at first opted to cooperate and give back half of the shoes, but the other half were put to use.

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The employee, who has not been identified, left the company to bear the financial burden after making the purchases and quitting the position right away, according to the reports.

The post by Singh alluded to a statement made by Akshay G Jain, the creator of Mlada, a Ludhiana-based direct to consumer apparel company, as reported by Mint. According to him, brands encounter a new set of difficulties as they grow. I never imagined that I would need to protect client information or arrange for exports from members of the same company because of security issues. Jain said, “It increases complexity, but there is no choice.”

We hired a CS person a couple of months ago. Within the first week of joining he made INR 2L of 100% discount orders – sent to his friends and quit in a week. When caught – initially he decided to cooperate and returned half the shoes but the other half were used etc. Then he… https://t.co/OyxgNOq2OP — Arjun (@arjuns__) February 21, 2026

Arjun’s posts read as follows: 

“We hired a CS person a couple of months ago. Within the first week of joining, he made INR 2L of 100% discount orders – sent to his friends and quit in a week.

When caught – initially he decided to cooperate and returned half the shoes, but the other half were used etc.

Then he started sending legal notices that we were harassing him in response to our notice to return the products or reimburse us!

So now we are enabling permissioning on our backend etc. amongst other things.”