Kult row deepens as ex-executive alleges ‘hush money’ offer; M3M calls itself a ‘victim’

New Delhi: The controversy around beauty-tech startup Kult escalated on Tuesday after former senior executive Adyasha Roy Tomar alleged that she was offered “hush money” to take down her earlier post on unpaid salaries and internal favouritism.

In a fresh LinkedIn post, Tomar wrote, “You get offered brand endorsement money. I get offered hush money. We are not the same.”

She further alleged that a representative reached out to her with an offer to remove her post. “A representative of Rahul Yadav called me to tell me Rahul would do something for me ‘personally’ if I would take my post down.”

Questioning the company’s financial priorities, she added, “So my bro has hush money in his account, but no money to pay salaries?”

Tomar also claimed that salary payments were deprioritised despite available resources, citing an alleged remark made to her. “Here, the dude told me, and I quote, that even if I pay your salaries, how will I run the company?”

She further alleged that she was told she had caused damage by speaking out, stating, “But the best part, the gentleman who has a history of not paying salaries, told me I DID ENOUGH DAMAGE. Me?”

Ending on a sharp note, she wrote, “Take the hush money, you’ll need it for those dramatic plastic surgery face transplant things for when you change your name.”

As the fresh allegations surfaced, investor M3M India distanced itself from the day-to-day functioning of Kult in an exclusive statement to BestMediaInfo, while describing itself as “a victim of the situation that has unfolded.”

Positioning itself as a financial and governance investor, M3M said, “Blissfulabodes Realty Private Limited, part of the M3M group family office, invested in Kult E-Commerce Private Limited as a financial and governance investor. We committed and deployed capital in full and on schedule, in good faith and in reliance on the representations made by the founding team at the time of investment.”

“The day-to-day management, operations, and executive decision-making of Kult, including all matters relating to hiring, payroll, vendor payments, and financial management, have at all times been the responsibility of the company’s founders and management team, Ms. Karishma Singh and Mr. Rahul Yadav,” M3M added.

In April 2025, the M3M family office invested $20 million (around Rs 170 crore) in beauty-tech startup Kult as part of its Series A round, alongside Venture Catalysts, to support product expansion and team growth. The round was led by Dr Payal Kanodia and Aishwarya Bansal.

Responding to reports of unpaid salaries, the company said, “We are as concerned as any other stakeholder by the reports of unpaid salaries. We want to be clear: M3M is itself a victim of the situation that has unfolded. We have deployed significant capital into this venture and, like the employees whose salaries are outstanding, we stand to lose if the Company is not put back on a sound footing. Our interests and the employees’ interests are aligned, not opposed.”

M3M also confirmed that it has initiated an independent audit into Kult’s financials and fund utilisation, stating, “It is precisely for this reason that we have taken immediate and decisive steps. An independent agency, Ashwath Partners, has been formally appointed to conduct a comprehensive review of the Company’s assets, financial position, and utilisation of invested funds. That review is currently underway. Its findings will determine the steps that follow, including any remedial action in respect of outstanding employee dues.”

On accountability, the company added, “We are committed to accountability, including our own, and to ensuring that all stakeholders, particularly employees, are treated fairly. We will have no further comment on specific operational matters while the audit is in progress.”

The development builds on her earlier LinkedIn post, where Tomar had alleged months of unpaid salaries and internal favouritism following her exit from the company within six months of joining.

She had also alleged that employees were directed to escalate the matter to M3M stakeholders, stating, “We have been told clearly to put pressure on Aishwarya Bansal and Pankaj Bansal of M3M India Private Limited as they are “responsible” for our livelihoods and salaries.”

“This, according to Rahul Yadav, and his literally silent CEO partner Karishma,” she added.