NestAway co-founder alleges fraud by Tiger Global, Chiratae, and Goldman Sachs

Amarendra Sahu, the co-founder of the home rental platform NestAway, has lodged an FIR (First Information Report) against the company's investors, including Tiger Global, Goldman Sachs, and Chirate Ventures, as well as its fellow co-founders Jitendra Jagadev and Smruti Parida.

The FIR cites sections of the IPC including 420 (cheating and dishonesty), 467 (forgery), 468 (forgery with intent to cheat), 471 (using a forged document as genuine), 506 (criminal intimidation), and 120B (criminal conspiracy).

In the complaint, Sahu claimed that his signatures, as a director of the company, were fraudulently used to facilitate the sale of NestAway for Rs 90 crore to the proptech firm Aurum on June 28, 2023. However, he resigned from the company’s directorship on June 19, 2023.

Following its acquisition, NestAway saw its valuation slashed by 95%. The company had amassed a total funding of $110 million over the years.

Sahu's complaint further alleged that the lead investors, including Tiger Global, Goldman Sachs, and Chirate Ventures, convinced him through emails, WhatsApp messages, and phone calls that he would receive an additional Rs 11.72 crore on top of the value of his 5% stake. However, they have since denied this after the transaction was completed.

The report states that Sahu is entitled to receive Rs 4.8 crore from Tiger Global, Rs 2.8 crore from Chiratae & affiliates, Rs 2.04 crore from Goldman Sachs, Rs 1.81 crore from UC RNT, and Rs 0.89 crore from Schroders Adveq.

“Believing their words and looking at their stature, I innocently agreed and completed all the work of selling the company,” Sahu’s FIR further added.

According to a media report, The Orissa High Court has been hearing petitions related to this matter and is set to review it again on January 9.

His fellow co-founder, Jagadev, who is also facing similar allegations, responded by stating that Sahu had raised the same accusations at the NCLT in Bengaluru, but they were dismissed. "It appears he is using the legal process to harass and apply undue pressure on these repeated investors," he added.

Established in 2015, NestAway is a tech-driven platform for the real estate market that simplifies rental transactions and related services. Using technology and data, it streamlines processes such as property searches, visit scheduling, rent payments, and service requests.