After weeks of public fallout and investor pressure, the former Twitter India head steps down from Invact Metaversity. The road ahead remains uncertain.
Manish Maheshwari has stepped down as CEO of Invact Metaversity, the embattled edtech-metaverse startup he co-founded, marking a dramatic turn in one of India’s most high-profile early-stage founder clashes.
In a tweet posted on May 27, 2022, Maheshwari announced his exit, stating:
“It is heartbreaking for a founder to leave the startup, like a mother leaving her baby… I will be cheering from the sidelines.”
His cofounder Tanay Pratap, a former Microsoft engineer and the startup’s chief product and tech architect, will now lead the company.
But after weeks of internal chaos, investor backlash, and incomplete funding, can Metaversity reset its course—or is this just the final act?
A Power Struggle, Out in the Open
The conflict between Maheshwari and Pratap had been simmering for months. But it exploded into public view after a company-wide clash in April, where the cofounders disagreed sharply—Pratap offered to quit, while Maheshwari reportedly refused to step aside.
Sources told Inc42 that:
- Maheshwari wanted to run the company like a scaled enterprise, not a startup.
- Pratap and the leadership team saw a need for collaborative, product-led execution.
- Investors and employees largely backed Pratap, believing the product couldn’t progress without him.
Investor trust in Maheshwari eroded quickly—particularly after an undisclosed VC backed out of a $2.5 Mn tranche, triggering a breakdown in internal alignment.
Investor Meltdown: “Manish Broke the Agreement”
The exit wasn’t graceful. Gergely Orosz, an Amsterdam-based angel investor, publicly accused Maheshwari of breaking a private agreement to step down.
“He got his terms. Manish did not keep the agreement. He lied to me,” Orosz tweeted.
“If a cofounder unethically holds a company hostage… I will do what is best for the employees, customers, and investors. Even if that means going public.”
This public rift between founder and funder further damaged Metaversity’s image—already suffering from course delays, employee exits, and failed acquisition talks, reportedly including Unacademy.
Was the Product Really Broken?
While Maheshwari claimed the tech wasn’t ready, multiple insiders contradicted him:
- The first month of the MetaMBA course was nearly complete.
- A Lite version of the platform was prepared for students with accessibility issues.
- “This was honestly a lie… Maheshwari was the product’s biggest champion until the fallout,” one former employee said.
The team faced logistical issues—some mentors were developing content independently—but the vision wasn’t as far from execution as suggested. It was the leadership breakdown that truly derailed progress.
What Now? Can Metaversity Be Saved?
With Maheshwari gone, Tanay Pratap faces the daunting task of rebuilding credibility with users, investors, and employees:
- The MetaMBA course must be relaunched—or convincingly replaced.
- Investor confidence must be rebuilt, especially with half of the $5 Mn seed round still unreleased.
- The brand must distance itself from its cofounder feud, and reposition around product strength.
But the damage runs deep. Investor patience is thin, and potential acquirers have walked away. The startup’s valuation, credibility, and momentum have all taken a hit.
“This isn’t just a product reset—it’s a reputation reset,” said one investor close to the situation.
A Cautionary Tale for India’s Early-Stage Ecosystem
The Metaversity episode offers a sharp lesson for India’s startup community: vision misalignment at the top can tank even the most well-funded ventures.
Despite a high-profile founding team, backing from over 70 investors, and a bold idea blending edtech and metaverse, Metaversity is now scrambling for survival.
Will Invact 2.0 under Pratap find clarity, ship product, and recover trust?
Or has this been yet another case of founder egos overshadowing execution?
TL;DR
Invact Metaversity cofounder and CEO Manish Maheshwari has resigned after a public clash with cofounder Tanay Pratap and investor pressure. With half the seed funding still pending and the product nearly ready, Tanay now leads the recovery effort amid credibility concerns.
AI summary
- Maheshwari exits Invact Metaversity amid investor and cofounder conflict
- Dispute over company vision triggered public fallout
- $2.5 Mn of committed funding still pending; investor accused Maheshwari of breaking agreements
- Product was near-ready, contradicting CEO’s claims
- New CEO Tanay Pratap faces uphill task of rebuilding trust and delivering
