Atlys Has Raised $37M Over the Years – But Where Exactly Are the Passports?

Atlys, the visa startup that promises to make international travel seamless, has raised $37 million over multiple rounds since its inception from the biggest names in the Indian VC ecosystem: Peak XV Partners and Elevation Capital among them. But if you ask its users, the real question is a bit different. It’s about why their passports seem to vanish into a black hole, why their applications are riddled with mistakes, and why customer support is non-existent. Lastly, this is a textbook example of how Tier 1 VCs in India prioritise spreadsheets over reality.

The Startup That Was Supposed to Solve a Real Problem

In theory, Atlys makes complete sense. Visa applications are a bureaucratic nightmare: long queues at VFS centers, endless paperwork, and unpredictable rejections. India’s post-pandemic travel boom has only amplified the friction, making a tech-driven solution seem like a no-brainer.

So, VCs saw “rising travel demand” + “high friction” and threw money at a startup that looked promising. What they didn’t do was check if it actually worked.

Users: “This Is More Stressful Than the Visa Process Itself”

Real customer feedback paints a disturbing picture:

 “My Schengen visa application was full of mistakes. Customer support? Missing. I’ve never been this anxious about an application before.”

 “Atlys confidently told me they had my passport safely secured. The problem? I had already received it back weeks ago. It’s like they had no idea what was going on.” 

For a startup that deals with passports- arguably the most critical travel document – this isn’t limited to bad service. It’s a full-blown trust crisis. 

The “Shiny UI, Broken Backend” Syndrome

Atlys seems to have fallen into a classic startup trap:

• Great UI: The app is smooth, polished, and gives off a premium feel.
• Chaotic Backend: The operational workflows seem disorganised, leading to misplaced passports and application errors.
• Ghosted Support: Users are left in the dark when things go wrong.

And let’s be honest, visa applications are not the kind of thing people want to “just figure out later.” If Atlys makes an error, it could mean cancelled trips, financial loss, or even legal trouble.

Tier 1 VCs and Their Spreadsheet Obsession,

The bigger issue here isn’t Atlys, though. It's actually how the Indian Tier 1 VCs fund “exciting” businesses based on macro trends rather than operational fundamentals.

The logic is simple:

1. More Indians traveling = Big market.
2. Visa processing is a painful experience = High friction.
3. Atlys offers a digital solution = Must be scalable.

Except, a great market doesn’t mean a great product.,

Atlys’ problems scream, “built for VC decks, not for actual customers.” And when you’re handling something as sensitive as international travel documents, that’s not a mere business flaw. it’s infact – reckless.

What’s Next for Atlys? 

If Atlys wants to justify its funding and not just be a glorified visa middleman, it needs to fix its core operations, customer support, and reliability. No amount of sleek UI can make up for a missing passport. As for VCs, maybe it’s time they start investing in execution and accountability, not just market potential. Because right now, Indian travellers aren’t getting a smooth experience, tbh. All they’re getting is a new kind of headache.

I hope you get our point. No? Read other pieces on ST, and you will.

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