iYogi

iYogi was an India-based remote technical support company founded in 2007 by Uday Challu and Vishal Dhar. It marketed assistance for computers, operating systems, software, security products, connectivity problems, and other consumer technology issues. Its service model generally relied on remote diagnosis and support delivered through telephone, online channels, and remote-access tools, with subscription-based plans and individual support engagements aimed primarily at consumers and, later, small and medium-sized businesses. The company expanded internationally from its Indian base and served customers in the United States, the United Kingdom, the United Arab Emirates, Australia, Canada, and India. It attracted investment from Sequoia Capital, Draper Fisher Jurvetson, Canaan Partners, SAP Ventures, and SVB India Capital Partners. In 2009 it acquired Utah-based Clean Machine Inc.; Larry Gordon, Clean Machine's founder, subsequently became iYogi's president of global channel sales. The company also pursued infrastructure and channel relationships, including a 2010 data-center agreement and subsequent expansion partnership with IBM. During the early 2010s, iYogi promoted itself as a convenient and relatively affordable alternative to in-person computer repair. It launched Indian operations targeting consumers and small and medium-sized enterprises in March 2013. The company also attempted to establish a North American call-center presence through a July 2015 arrangement with Maine-based Argo Marketing Group. That relationship ended later in 2015 amid a dispute over unpaid invoices and the planned creation of jobs. The brand's reputation deteriorated as customers, technology companies, journalists, and public authorities alleged that its sales and support practices were misleading. Reported complaints included claims that callers seeking authorized or warranty support from companies such as Microsoft, Apple, HP, Kaspersky Lab, Avast, or Nuance were instead routed to or contacted by iYogi; assertions that computers had serious problems without credible diagnostic evidence; aggressive promotion of paid support subscriptions; and continued marketing calls after consumers requested removal from contact lists. Avast ended its relationship with iYogi in 2012, and Nuance publicly warned in 2015 that iYogi was not certified to provide Dragon NaturallySpeaking support. The company also faced class-action litigation, consumer-protection proceedings, contract disputes, and claims from technology and telecommunications partners. A federal settlement concerning telephone-consumer-protection allegations was approved in 2015. Washington State, Microsoft, and AARP pursued allegations involving deceptive business practices and spyware-related consumer-protection violations. Separate lawsuits involved unpaid obligations to service providers and other commercial counterparties, including Infinite Computer Solutions and Tata Communications. By 2016, press reports described severe financial and operational stress, including complaints from employees who said they had not been paid and substantial staff departures. iYogi's chief executive acknowledged a cash-flow crisis while disputing some reported employment figures. In 2018, the Washington State Attorney General's Office reported that iYogi India appeared to have shed most or all of its employees and that its United States operation appeared to have closed. A Washington court subsequently entered judgment in the consumer-protection case, while Vishal Dhar agreed to cease the practices at issue, subject to suspended penalties. The company is generally regarded as defunct, although phishing messages falsely claiming to come from iYogi were still reported in 2020.

iYogi was established in 2007 by Uday Challu and Vishal Dhar as a remote technical-support business headquartered in Gurgaon, India. Its core proposition was to provide consumers with telephone and online assistance for computer problems without requiring an on-site technician. Support topics included malware and virus removal, software installation, operating-system troubleshooting, security issues, and general computer maintenance. The company later sought to serve small and medium-sized businesses as well as household users. The business pursued an international model from the beginning. Its customer base included users in the United States, the United Kingdom, the United Arab Emirates, Australia, Canada, and India. Venture investors included Sequoia Capital, Draper Fisher Jurvetson, Canaan Partners, SAP Ventures, and SVB India Capital Partners. In 2009, iYogi acquired Clean Machine Inc., a Utah-based company, and appointed its founder, Larry Gordon, to lead global channel sales. This acquisition supported iYogi's effort to develop distribution and partnership channels outside India. Capital raising and infrastructure expansion followed. In 2010, iYogi secured investment from Draper Fisher Jurvetson and other investors and later completed a larger Series D financing led by Sequoia Capital. IBM entered into a data-center agreement with iYogi in February 2010 and later formed another partnership related to international expansion. iYogi formally launched operations in India on 7 March 2013, targeting both consumers and small and medium-sized businesses in that market. In July 2014, Axon Partners and Madison India Capital invested in the company. Contemporary reporting placed the company's estimated valuation at approximately $400 million, although the figure was an estimate rather than a public-market valuation. The company attempted to expand its support infrastructure in North America in 2015 through a partnership with Argo Marketing Group of Lewiston, Maine. The parties announced plans for a call center and the creation of 300 jobs. The arrangement ended in October 2015 after Argo terminated the contract and filed a claim concerning approximately $72,000 in alleged unpaid amounts. Argo reported that it had hired 30 employees and received only part of the money it believed was owed. At the same time, iYogi faced increasing criticism of its customer-acquisition and sales methods. Investigations and reports described consumers who believed they were contacting manufacturers or receiving free or warranty support but were instead connected with iYogi. Critics alleged that sales representatives promoted annual support subscriptions, sometimes for approximately $170, by asserting that users' computers had serious problems. Security writer Brian Krebs reported that his own interaction led him to conclude that the company was using fear-based sales methods. Kaspersky Lab also reported complaints from customers who believed they had reached authorized Kaspersky support. The company lost a relationship with Avast in 2012 after Avast accused iYogi of using support interactions to sell costly plans that Avast considered unnecessary. In 2015, Nuance Communications issued a separate warning that iYogi was not certified to provide support for Dragon NaturallySpeaking. A New York class-action complaint filed in 2013 alleged that iYogi's free-diagnostic advertising did not provide meaningful individualized testing and that customers were routinely presented with similar warnings about supposed computer problems. Litigation expanded during 2015 and 2016. Nearly 200,000 current and former subscribers were involved in allegations under the United States Telephone Consumer Protection Act concerning aggressive marketing calls, including calls placed after consumers requested that they be removed from contact lists. A federal court approved a settlement in October 2015. Washington State, Microsoft, and AARP also pursued allegations under state consumer-protection and computer-spyware laws, claiming that Washington residents had been misled and sold unnecessary software or services. iYogi rejected the accusations and said the Washington case was without merit. Financial and operational difficulties became more visible in 2016. Hindustan Times reported that the company was losing customers and that employees had complained of prolonged non-payment. Reports also suggested that thousands of employees had departed, although iYogi disputed the scale of the departures. Uday Challu described the situation as a cash-flow crisis and a difficult phase in the business cycle. Commercial litigation added to the pressure: Infinite Computer Solutions pursued unpaid invoices, and Tata Communications, Bankers Warranty Group, and OneCall brought claims involving payment and contractual issues. Courts later entered judgments against iYogi in some of these matters. In April 2018, the Washington State Attorney General's Office reported that iYogi India had shed most or all of its employees and that the United States operation appeared to have closed. Proceedings in Washington resulted in judgments and an agreement by Vishal Dhar to cease the practices addressed by the case, with suspended penalties. The company is consequently treated as defunct. Later phishing campaigns continued to misuse the iYogi name, but these messages were not evidence of an ongoing legitimate iYogi operation.

• 2018

  Operations reported as largely closed

  [1]IYogien.wikipedia.org

  Washington authorities reported that iYogi had lost most or all of its Indian employees and that its United States operation appeared to have shut down.

• 2015

  North American call-center partnership

  [1]IYogien.wikipedia.org

  iYogi partnered with Argo Marketing Group to establish its first North American call center, but the arrangement ended later that year.

• 2013

  Indian market launch

  [1]IYogien.wikipedia.org

  iYogi began domestic operations in India on 7 March, serving consumers and small and medium-sized businesses.

• 2010

  IBM data-center and expansion relationships

  [1]IYogien.wikipedia.org

  IBM entered into a data-center agreement with iYogi and later supported the company's international expansion through another partnership.

• 2009

  Acquisition of Clean Machine

  [1]IYogien.wikipedia.org

  iYogi acquired Utah-based Clean Machine Inc. and appointed its founder Larry Gordon as president of global channel sales.

• 2007

  iYogi founded

  [1]IYogien.wikipedia.org

  Uday Challu and Vishal Dhar co-founded the remote technical-support company in India.

A consumer-oriented remote IT-support provider positioned around convenience, telephone assistance, remote diagnosis, and subscription access to technical help.

• Professional service · 2007

  Remote technical support

  iYogi's principal offering was remote assistance for consumer and small-business technology problems. Support representatives handled issues such as computer performance, operating-system errors, software installation, connectivity, security, and malware removal through telephone and online channels. The service was marketed as a convenient alternative to local repair and was commonly packaged through recurring support plans.

• Diagnostic service

  Remote PC diagnostics

  The company promoted online or telephone-based computer checks intended to identify technical problems and recommend corrective action. Critics and litigants disputed whether some advertised diagnostic interactions involved credible individualized testing, alleging that similar problem warnings were presented to many prospective customers.

• Technical support service

  Software and security support

  iYogi offered assistance with software installation, troubleshooting, security tools, virus removal, and related computer maintenance. The company was criticized when users reportedly believed they were obtaining authorized help for products associated with companies including Kaspersky Lab, Avast, and Nuance.

• 2016

  Unpaid commercial obligations and operational distress

  Multiple suppliers and partners sued over alleged non-payment and contract breaches. Reports also described unpaid employee wages, customer losses, and substantial staff attrition.

  Source

• 2015

  TCPA marketing-call allegations

  Current and former subscribers alleged that iYogi made aggressive marketing calls, including calls to consumers who had asked to be removed from calling lists. A federal settlement was approved in 2015.

  Source

• 2015

  Washington consumer-protection case

  Washington State, Microsoft, and AARP alleged deceptive business practices and violations of Washington's computer-spyware statute. The case later produced judgments and an agreement by Vishal Dhar to cease the challenged practices.

  Source

• 2013

  New York false-advertising litigation

  A class-action complaint alleged that iYogi's free-diagnostics promotion did not provide credible diagnostic testing and that prospective customers were routinely told that their computers required paid intervention.

  Source

• 2012

  Alleged misleading support sales

  Journalists and customers alleged that iYogi represented itself as an authorized or warranty-related support channel and used claims about severe computer problems to sell subscriptions. Avast ended its relationship with the company and accused it of forceful selling.

  Source

Read more

• 2015

  Build a North American call-center presenceStrategy

  Background

  iYogi attempted to expand its customer-support infrastructure in North America.

  Action taken

  It partnered with Argo Marketing Group to establish a call center in Maine and announced plans associated with 300 jobs.

  Aftermath

  Argo ended the arrangement in October 2015 and filed a claim concerning alleged unpaid obligations.

  Source

• 2013

  Enter the Indian domestic marketStrategy

  Background

  Although headquartered in India, iYogi had developed a strongly international customer and operating model.

  Action taken

  iYogi launched services in India for consumers and small and medium-sized businesses.

  Aftermath

  The launch broadened the company's stated market scope, but no sustained operating outcome is established in the available material.

  Source

• 2009

  Acquire Clean Machine Inc.M&A

  Background

  iYogi sought to broaden its capabilities and channel reach in the United States.

  Action taken

  The company acquired Utah-based Clean Machine Inc. and brought its founder Larry Gordon into a global channel-sales leadership role.

  Aftermath

  The transaction supported iYogi's international distribution strategy, although later operations became dominated by legal and financial problems.

  Source

1. 1IYogien.wikipedia.org
2. 2iYogi official websiteiyogi.com