Y Combinator Removes Indian Startup Medobed from Its Batch Due to “Irregularities”

Prominent venture firm, Y Combinator, has made headlines with its recent decision to exclude the Indian startup, Medobed, from its S23 batch. The company was initially selected for its promise of delivering medicine in a span of 10 minutes. However, recent events led to the discovery of “irregularities” that went against Y Combinator’s ethics policy. Sources familiar with the matter disclosed this information to TechCrunch.

Email Disclosures

Evidence of the decision comes from an email, obtained by TechCrunch, in which a YC group partner explicitly advised potential investors against engaging with Medobed. The email did not delve into the specifics of the said irregularities but urged any individuals or entities with outstanding affiliations to “disengage completely with the company.” Key points from the email include:

  • Medobed’s removal from Y Combinator’s batch.
  • Medobed will not be participating in YC’s demo day.
  • The startup has, as of now, not raised any funds through this process.

Statements and Suspicions

While Y Combinator and Medobed’s founders have remained silent on the matter, refusing to comment as of August 29th, certain accounts have raised eyebrows. An investor, speaking under the condition of anonymity, expressed reservations about a founder’s claims related to Medobed. This investor cited frequent changes in the founder’s educational history narration and inconsistencies in the company’s growth metrics, especially the “$1 million of monthly GMV and EBITDA profitability.” TechCrunch has yet to independently authenticate these allegations.

Unprecedented Move

Y Combinator’s decision is seen as a significant move given the rarity of such actions. The venture firm, known to select only a handful of startups from a plethora of applications, has seldom removed a company from its esteemed batch. This highlights the severity of the irregularities discovered at Medobed.

The Indian Market & Y Combinator

India has witnessed a surge as a crucial market for Y Combinator in the recent half-decade. The removal of an Indian startup like Medobed from its batch emphasizes the venture firm’s unwavering commitment to maintaining its stringent ethical standards, regardless of the market’s importance.

Implications for the Startup Community

The removal of Medobed serves as a stark reminder for startups globally about the significance of transparency, integrity, and the maintenance of ethical standards. For the startup ecosystem to thrive, it’s essential for founders to be forthright about their credentials, operations, and metrics. Misrepresentations, even if they seem minor, can have lasting repercussions, jeopardizing not only funding opportunities but also tarnishing the reputation of the involved entities.

Investors’ Perspective

From an investor’s standpoint, the Medobed incident underscores the importance of thorough due diligence. Investors, before making any commitments, are reminded to critically evaluate the veracity of the claims made by startups. This incident also highlights the need for a robust system of checks and balances, ensuring that investments are made in startups that adhere to both ethical and operational standards.

Future Precautions and Measures

In light of recent events, it wouldn’t be surprising if venture firms, including Y Combinator, introduced more stringent screening processes for their batches. These might include:

  • Enhanced Background Checks: Deep dives into founders’ educational and professional backgrounds to verify the authenticity of their claims.
  • Detailed Operational Audits: Scrutinizing the startup’s operational metrics and financials to ensure consistency and accuracy.
  • Third-party Verification: Engaging external agencies to authenticate the information provided by the startups, ensuring an unbiased evaluation.


Y Combinator’s action underlines the criticality of upholding ethical standards in the startup ecosystem. In an industry heavily reliant on trust and credibility, it becomes paramount for significant players to spotlight and rectify irregularities, championing best practices. This not only ensures the venture firm’s reputation remains intact but also fosters a healthy startup environment globally., setting a precedent for other venture firms and accelerators worldwide.