ED probes SIMPL app's parent firm for foreign investment violations
The Enforcement Directorate (ED) has filed a case against One Sigma Technologies Pvt. Ltd., the company behind the SIMPL app, for allegedly breaking foreign investment rules.
They're accused of taking in over ₹913 crore from overseas investors without getting the required government nod—a pretty big deal under India's FDI laws.
The company's director, Nithya Nand Sharma, is also under scrutiny.
One Sigma called itself an IT services firm
Investigators say One Sigma called itself an IT services firm but was actually running financial operations—something that needs special approval for foreign funding.
By raising money and issuing convertible notes without those approvals, they may have sidestepped key regulations.
The whole episode is a reminder that fintech and finance startups need to play by the FDI rulebook if they want to avoid trouble.