Nestaway Co-Founder Files FIR Charges Against Prominent Investors and Fellow Founders Over Fraudulent Company Sale
Amarendra Sahu, the co-founder of the home rental platform NestAway, has filed FIR against several prominent investors, including Tiger Global, Goldman Sachs, and Chirate Ventures, as well as his fellow co-founders, Jitendra Jagadev and Smruti Parida. The FIR includes serious allegations of fraud, dishonesty, forgery, and criminal conspiracy, and cites various sections of the Indian Penal Code (IPC), such as Section 420 (cheating and dishonesty), Section 467 (forgery), Section 468 (forgery with intent to cheat), Section 471 (using a forged document as genuine), Section 506 (criminal intimidation), and Section 120B (criminal conspiracy).
According to the complaint, Sahu claims that his signature as a director of NestAway was fraudulently used to facilitate the sale of the company to the proptech firm Aurum on June 28, 2023. Sahu alleges that the transaction was carried out without his consent, despite the fact that he had resigned from the company’s directorship on June 19, 2023. The sale of NestAway was reportedly made for ₹90 crore, but the company’s valuation plummeted by 95% post-acquisition. This drastic decrease in value came after the company had amassed a total funding of $110 million over the years.
Sahu’s complaint further alleges that the lead investors, including Tiger Global, Goldman Sachs, and Chirate Ventures, convinced him through various communications—emails, WhatsApp messages, and phone calls—that he would receive an additional ₹11.72 crore on top of the value of his 5% stake in the company. However, after the transaction was completed, these investors allegedly denied any such agreement, leaving Sahu with claims of outstanding payments. The report from Sahu’s FIR highlights that he is entitled to receive ₹4.8 crore from Tiger Global, ₹2.8 crore from Chirate Ventures and its affiliates, ₹2.04 crore from Goldman Sachs, ₹1.81 crore from UC RNT, and ₹0.89 crore from Schroders Adveq.
In his FIR, Sahu explained that he had believed the investors' promises, given their stature in the industry, and had innocently agreed to proceed with the sale. He asserts that he completed all the necessary formalities and work required for the deal, trusting that the investors would honor their commitment to compensate him fairly.
The matter has attracted attention from both the legal and business communities, especially as it highlights issues of corporate governance, transparency, and ethical practices in startup acquisitions. NestAway, which was established in 2015, had quickly gained recognition as a tech-driven platform that simplified rental transactions and related services in the real estate market. The platform utilized technology and data to streamline processes such as property searches, scheduling visits, making rent payments, and handling service requests. Despite its rapid rise, the company's post-acquisition situation has become embroiled in controversy.
Sahu’s complaint is currently being heard in the Orissa High Court, which has been reviewing petitions related to this issue. The court is scheduled to revisit the case on January 9, 2025. As the legal process continues, the case is set to become a focal point for discussions on how startups should manage their dealings with investors and co-founders, especially when the stakes are high.
In response to Sahu’s allegations, his fellow co-founder, Jitendra Jagadev, who is also facing similar accusations, has dismissed the claims as baseless. He noted that Sahu had raised the same concerns at the National Company Law Tribunal (NCLT) in Bengaluru, but those claims were dismissed. Jagadev suggested that Sahu’s legal actions were merely an attempt to harass the investors and apply undue pressure on them. According to Jagadev, the decision to file the FIR in Odisha seemed to be a strategic move to intimidate the investors involved.
Stay tuned for further updates as the Orissa High Court reviews the matter on January 9, 2025.
