Exodus of advisors at 5ire, India’s meteoric ‘105th unicorn’

Emmanuel Samarathisa and Terence Lee co-reported this story – the second installment of a two-part series. Read the first one here.

In July, the three founders of 5ire were living the dream.

The company, formed in late 2021, was building 5irechain, a “proof-of-benefit” blockchain that had been highlighted at the World Economic Forum’s (WEF) 2022 annual meeting in Davos, Switzerland, last May. When 5ire said in July that it had reached unicorn status, it was widely covered by the crypto and Indian tech media.

But by August, a mass exodus of its advisors began. They claimed that they weren’t receiving information about the company, raising questions about 5ire’s financials, assets, and even its investors.

Now the company seems to be trying to correct its course. It has put together a new board of directors, addressed questions about its valuation, and even clarified “some gray areas” with its investors.

Also, 5ire is now calling itself a “blockchain” company instead of a “crypto” one. It hopes the change will help it be seen more as a serious technology firm and not just another player in the Wild West-like crypto scene.

The founders – Pratik Gauri, 31; Prateek Dwivedi, 32; and Vilma Mattila – say they began to realize that a change was needed in April.

In August, Arjun Prasad, an advisor who had joined the company in March, was put in charge of the advisory board. He tells Tech in Asia that he replaced the existing roster of advisors, which was largely made up of representatives from the crypto industry, with more people from mainstream companies.

Tech in Asia spoke to several members of the previous board, who said that lack of communication was the main cause of concern among investors. Prasad admits there was a problem with the initial slate, which was put in place “​​based on personal relationships between the co-founders.”

“It was done on a very ad hoc basis, which isn’t the correct way. I think everyone was too busy trying to build 5ire,” he notes.

The new makeup of the advisory board is meant to cement its current positioning as a “blockchain” firm.

What does 5ire do?

Proof of benefit?

Who are the founders?

The Pope and Woz

Doctorates from Malaysia?

A token offering comes next