This complaint by SEBI in India is in addition to the suit that PhonePe has already filed in the Singapore High Court against Ventureeast Proactive Fund-II (VPF) and Affle.
PhonePe (signal image)
Digital payments firm PhonePe on Saturday filed a formal complaint with SEBI against VentureEast Fund Advisors India Ltd. In which it is alleged that there was a ‘side dealing’ with Effle to prevent the acquisition of VentureEast IndusOS. In fact, in this case, PhonePe had negotiated a long way to get a large stake in IndusOS.
This complaint by SEBI in India is in addition to the suit that PhonePe has already filed in the Singapore High Court against Ventureeast Proactive Fund-II (VPF) and Affle. The lawsuit claims that VPF intentionally defrauded PhonePe, continuing to sell its stake in OSLabs to PhonePe and IndusOS’ parent OSLabs in favor of PhonePe, even though it sold the same shares to OSLabs in a no-side deal with Affle. was sold to.
Learn about the case in detail
PhonePe currently holds 32 per cent stake in OSLabs. Last month, Flipkart-owned PhonePe was in talks to acquire domestic app store IndusOS for $60 million. However, soon after, mobile marketing platform Afley moved the Singapore High Court, suing PhonePe and OSLabs, objecting to the deal.
Sameer Nigam, CEO and Founder, PhonePe, said, “As founders, we have always adhered to the highest standards of legal and ethical integrity by our investors but these standards should apply to investors of startups as well. I believe that in this case, VPF has not only violated SEBI’s code of conduct, but it has also acted in complete dereliction of its fiduciary duties as a large shareholder of IndusOS. By deliberately derailing IndusOS’s acquisition of PhonePe, VPF has also harmed the long-term interests of OSLabs.”
The corporation said, “We believe that it is important for the larger startup system to expose such unethical practices by VPF. We have a very strong case and we are confident that we will win on both fronts and hopefully create a strong deterrent against bad actors trying to bully young startups in the process.”
While the legal matters will be settled in court, PhonePe expects SEBI to flout these blatant ethical violations and the duty of VPF to protect the interests of OSLabs.
read this also- 50-year-old woman fell in love with a doctor on Instagram, on the pretext of treating her heart, kept 80 lakh limes
Also read- Appointment of this officer should be done from the headquarters of the company not from India, this is very important under the new IT rules