Nestaway Co-founder Files Fraud Complaint Against Investors Including Goldman Sachs

Amarendra Sahu, the co-founder of the home rental platform NestAway, has filed a First Information Report (FIR) against his fellow co-founders and investors alleging fraudulent use of his signature during the sale of the business to Aurum Proptech in 2023.

Sahu lodged the complaint against the company's investors including Tiger Global, Goldman Sachs, and Chirate Ventures, as well as his co-founders Jitendra Jagadev and Smruti Parida.

Sahu's FIR alleges several serious claims of misconduct including cheating and dishonesty, forgery, forgery with intent to cheat, using a forged document as genuine, criminal intimidation, and criminal conspiracy.

A first information report (FIR) is a document prepared by police organisations in many South and Southeast Asian countries. The FIR is important as it sets the process of criminal justice in motion. It is only after the FIR is registered in the police station that the police take up investigation of most types of cases.

The complaints allege that his signature was illegally used during the process that saw Nestaway sold to Aurum Proptech for INR 90 crore (USD 10.5 million) in 2023—a deal which slashed the valuation of Nestaway by a massive 95%.

Sahu, who held a 5% stake in the business, also claims Tiger Global, Goldman Sachs, and Chirate Ventures informed him he would receive INR 11.72 crore (USD 1.36 million) on top of the value of his equity, only for them to deny this claim after the deal was completed.

The FIR complaint says the deal to sell Nestaway to Aurum was forced through unfairly, and also appears to suggest that Sahu is entitled to a significant cash payment worth USD 1.44 million from the alleged perpetrators.

"Now I am running with great financial hardship," says Sahu's complaint. His letter to police went on to say:

"The other directors of NestAway Technologies, Jitenda Jagadev and Smruti Parida, who were also hand in gloves with investors, have used proceeds of crime to buy properties in Odisha."

However, Sahu's co-founder and defacto defendant Jagadev has already rebuked the complaint, saying:

"He [Sahu] appears to be using the process of law to harass and exert undue pressure on these reputed investors. His decision to now pursue the matter in Odisha jurisdiction appears to be a calculated move."

Nestaway is a leading rentals portal in India and was snapped up at a significant discount by Aurum Proptech last year, a company which has struggled for profitability despite increasing revenues in 2023.