Home Rental firm NestAway's Co-Founder files FIR against several Investors

By submitting a First Information Report (FIR) against several of its major investors, including Tiger Global, Goldman Sachs, and Chiratae Ventures, Amarendra Sahu, Co-Founder of the well-known home rental website NestAway, has taken a significant legal step. Jitendra Jagadev and Smruti Parida, two more co-founders, are also named in the FIR. The case represents a significant shift for the business, which has struggled since being purchased by the proptech company Aurum.

In his FIR, Sahu accused him of serious violations under several sections of the Indian Penal Code, including criminal conspiracy, forgery, and cheating.

Just days after he resigned from his post on June 19, 2023, he alleges that his signature, while he was a director of the firm, was illegally exploited to enable the sale of NestAway for Rs. 90 crore on June 28, 2023.

The integrity of the deal was questioned as NestAway's valuation reportedly fell by a startling 95% after this acquisition.

Sahu's complaint alleges that lead investors informed him of an extra Rs. 11.72 crore in addition to his 5% ownership in the company using a variety of media, including phone calls, WhatsApp messaging, and emails. He said that after this correspondence, the investors withdrew the claims after the transaction was completed.

Since he knew and trusted these investors and sold the business with the understanding that he would receive just compensation, Ahu thinks they are wonderful people.

The Orissa High Court is currently considering petitions pertaining to the matter, and on January 9, 2025, it will be listed for further review. Jagadev, who is facing similar charges, made this public and said that Sahu had previously raised similar arguments before the NCLT Bengaluru and was rejected. Jagadev claims that Sahu has been abusing the judicial system to exert undue pressure on the investment by engaging in fraud.

NestAway was founded in 2015 with the goal of using a technology-driven platform to streamline rental transactions and associated services. The business has established itself as a leader in the real estate industry by raising a total of $110 million in capital throughout the years. By simplifying procedures like property searches, visit scheduling, and rent payments, NestAway has aimed to make renting simpler for both landlords and renters.