The co-founder of the leading home rental platform, NestAway, Amarendra Sahu, has taken a crucial legal step by filing a First Information Report (FIR) against some of its top investors such as Tiger Global, Goldman Sachs, and Chiratae Ventures. The FIR also includes names of fellow co-founders, Jitendra Jagadev and Smruti Parida. The case is the dramatic turn for the company, which faced challenges since being acquired by proptech firm Aurum.
PC: Entrackr
Sahu in his FIR, has alleged severe offenses under the different sections of IPC which include some offenses like cheating, forgery, and criminal conspiracy. He claims that his signature, while serving as a director of the company, was fraudulently used to facilitate the sale of NestAway for ₹90 crore on June 28, 2023, just days after he resigned from his position on June 19, 2023. Following this acquisition, the valuation of NestAway reportedly plummeted by an alarming 95%, raising questions about the integrity of the transaction.
The complaint by Sahu reveals that lead investors had communicated to him through various media, such as e-mails, WhatsApp messages, and phone calls, in which he had been assured of an additional ₹11.72 crore in addition to his 5% stake in the company. Following this communication, he alleged that the investors retracted the statements once the deal was done.
In his FIR, Sahu elaborates on certain amounts he claims that he is rightfully owed by the investors involved as follows:
₹4.8 crore: Tiger Global
₹2.8 crore: Chiratae Ventures and its associate
₹2.04 crore: Goldman Sachs
₹1.81 crore: UC RNT
₹0.89 crore: Schroders Adveq
Sahu believes that these investors are of good character, as he knew them and trusted them, and he sold the company under the impression that he would be fairly compensated.
The Orissa High Court is presently seized of petitions with regard to the case and it is listed before the same High Court again for consideration on 9 January 2025. Jagadev, who stands accused of something similar, went public with this claim and submitted that Sahu had already ventilated such contentions before NCLT Bengaluru and was dismissed. It is alleged by Jagadev that Sahu has been playing a fraud to put undue pressure on the investor through misuse of the legal process.
NestAway was established in 2015 with the aim of simplifying rental transactions and related services through a technology-driven platform. The company has raised a total of $110 million in funding over the years, positioning it as a leader in the real estate market. NestAway has sought to make renting easier for both property owners and tenants by streamlining processes such as property searches, visit scheduling, and rent payments.
The allegations by Amarendra Sahu against major investors in NestAway have raised some serious concerns regarding the governance and financial practices within the company. The implications for NestAway and its stakeholders are going to be very profound in this case, affecting investor confidence and the future of the company. The court review will thus be critical in determining the next steps for all parties involved in this high-stakes dispute.
