Startups Are Onboarding Big 4 Auditors Earlier to Avoid Governance Lapses: Kunal Bahl

As people are focusing on the negative impact of recent corporate governance failure incidents, Snapdeal and Titan Capital cofounder Kunal Bahl shares a completely different perspective. He sees a “silver lining” in these “unfortunate” episodes because start-up founders are now onboarding big four auditors earlier.

Speaking at TiE’s India Internet Day 2025 today, Bahl said, “There’s one silver lining to come out of these unfortunate incidents. These have sparked early-stage conversation about governance”.

“We are now seeing a real shift in mindset. Earlier, founders used to say --- I don’t need a big four auditor until my Series B. But today, they are onboarding the auditor right after Series C. It may cost an extra Rs 2 lakh but they are okay with it because it not only gives peace of mind to just founders, but also to shareholders and employees,” he said.

According to him, corporate governance is not something only large companies should implement; rather, it starts from day one when a person starts a business. “While its application may be simpler or less formal in the early stages, the core principle remains the same --- mindset. It’s about committing to run a clean operation where all compliances are met, every rupee is accounted for, vendors are paid on time, and employees are treated fairly,” the Unicommerce promoter said.

In short, it revolves around “communicating transparently", which means sharing the good and bad news both with the stakeholders, he said, adding that the failure of governance not only takes away investors’ confidence but also pulls out the credibility of the entire ecosystem.

Kunal Bahl’s Approach to Governance

Citing an example of his own businesses, Bahl revealed his way for building strong corporate governance. “We conduct full statutory quarterly audits—the kind that listed companies are required to do. We conduct thorough reference checks on founders. It’s not just about money—it’s about how they’ve conducted themselves professionally,” he said.

“We look things like --- when they left a previous employer, did they leave on good terms? If they managed teams, did they treat their team members well? Did they communicate transparently, or did they disappear without explanation? We also try to get a full picture of their character and working style. If they’re already running a revenue-generating business, we also check whether they have maintained proper financial records,” he explained.

Besides these factors, Bahl also look after the start-up’s bookkeeping and compliance, which reflects the internal compass of the business. If a founder values structure, discipline, and attention to detail early on and if he is committed to building a company “in writing,” so to speak—that mindset usually carries through the company’s entire journey, then Bahl is willing to support such entrepreneurs.