A Bengaluru startup founder has alleged that a glitch in Zoho Books led to significant financial losses. Azeem Hussain, co-founder of FlexyPe, said the software wrongly marked failed transactions as successful, causing accounting errors.
The issue reportedly went unnoticed until a manual audit revealed discrepancies, leading to losses and operational challenges. Hussain has said he plans to take legal action against Zoho.
Zoho responded by saying the problem could be linked to a payment gateway issue and added that it is reviewing the case. The incident has raised concerns among startups about relying fully on automated accounting systems.