Lord William Henry Cavendish-Bentinck, the Governor of Madras at the time of the Vellore mutiny
The initial British reaction to this was one of anger and fear, the anger that a few soldiers could defeat a mighty power, and the fear that this would make the East India Company lose out on their territories and their hegemony over the subcontinent. The governor of Madras, William Bentinck, was immediately discharged for his role in angering the locals, and whatever change British India could go through was stagnated. Meanwhile, Napoleon, whom had only a year ago defeated Austria and conquered almost all of Western Europe, began to set his sights east. Although his initial jaunts in Egypt and Syria may have failed, with the Vellore mutiny and the establishment of a completely independent state in India, all the way from Vellore up till parts the Northern Circars, the British felt a new threat.
With Bentinck gone, they now had to replace him with William Petrie, who only ruled for a small period of time before his own replacement by the Lord Barlow.
The British however, would not give up and continued to keep troops stationed in south India, with several raids by Vellorean mercenaries not uncommon. This distracted them from the larger problems in Europe and the colonies, and thus, lost battles against the French, who had a lot less to worry about, in both Africa and the Caribbean.
What would the East India Company face next? Would they finally get lucky, or would they die a painful death?