Startup governance: Audits in focus amid financial irregularities at new-age ventures

Frequent occurrence of serious corporate governance issues at Indian startups has led some of the leading consulting firms to initiate discussions with venture funds to audit their portfolio companies, multiple industry sources told ET.

Some of the auditors have in recent weeks made presentations to venture capital funds showing how their previous audits unearthed financial irregularities such as inflated revenue at startups, said a venture investor who has seen such presentations. These investors and industry executives did not name the firms individually as the conversations are private.