The Karnataka Crime Investigation Department (CID) has taken over the investigation of a complaint filed by IPO-bound Swiggy, involving a former junior employee who allegedly defrauded the foodtech startup of nearly INR 33 Cr.
The͏͏ case͏͏ has͏͏ been͏͏ handed͏͏ over͏͏ to͏͏ the͏͏ Karnataka͏͏ CID,͏͏ with͏͏ the͏͏ investigation͏͏ ongoing͏͏ and͏͏ a͏͏ breakthrough͏͏ anticipated͏͏ soon,͏͏ Moneycontrol͏͏ reported,͏͏ citing͏͏ sources͏͏ within͏͏ the͏͏ department.͏͏ Initially͏͏ launched͏͏ at͏͏ Marathahalli͏͏ Police͏͏ Station,͏͏ the͏͏ probe͏͏ was͏͏ transferred͏͏ to͏͏ the͏͏ CID͏͏ due͏͏ to͏͏ the͏͏ significant͏͏ amount͏͏ involved.
Embezzlement Details͏͏ Revealed͏͏ in͏͏ DRHP:
In͏͏ its͏͏ updated͏͏ draft͏͏ red͏͏ herring͏͏ prospectus͏͏ (DRHP)͏͏ filed͏͏ with͏͏ market͏͏ regulator͏͏ SEBI,͏͏ Swiggy͏͏ revealed͏͏ that͏͏ in͏͏ fiscal͏͏ year͏͏ 2023-24͏͏ (FY24),͏͏ a͏͏ former͏͏ employee͏͏ embezzled͏͏ INR͏͏ 32.67͏͏ Cr͏͏ from͏͏ its͏͏ business-to-business͏͏ (B2B)͏͏ division,͏͏ Scootsy͏͏ Logistics.
Continue͏͏ Exploring:͏͏ Former͏͏ junior͏͏ staff͏͏ at͏͏ Swiggy embezzled͏͏ INR͏͏ 33͏͏ Cr;͏͏ investigation͏͏ underway
The͏͏ case͏͏ traces͏͏ back͏͏ to͏͏ November͏͏ 2023,͏͏ when͏͏ Scootsy͏͏ lodged͏͏ a͏͏ police͏͏ complaint͏͏ against͏͏ a͏͏ former͏͏ junior͏͏ employee͏͏ and͏͏ at͏͏ least͏͏ a͏͏ dozen͏͏ vendors,͏͏ alleging͏͏ they͏͏ conspired͏͏ to͏͏ embezzle͏͏ INR͏͏ 32.67͏͏ Cr͏͏ between͏͏ August͏͏ 2021͏͏ and͏͏ February͏͏ 2022.
Last͏͏ month,͏͏ reports͏͏ surfaced͏͏ that͏͏ Swiggy͏͏ had͏͏ filed͏͏ a͏͏ legal͏͏ complaint͏͏ against͏͏ the͏͏ employee͏͏ involved͏͏ in͏͏ the͏͏ misappropriation͏͏ of͏͏ funds͏͏ and͏͏ had͏͏ appointed͏͏ an͏͏ external͏͏ team͏͏ to͏͏ investigate͏͏ the͏͏ issue.
According͏͏ to͏͏ the͏͏ first͏͏ information͏͏ report͏͏ (FIR)͏͏ obtained͏͏ by͏͏ Moneycontrol,͏͏ Srikhara͏͏ KM͏͏ has͏͏ been͏͏ named͏͏ the͏͏ prime͏͏ suspect͏͏ in͏͏ the͏͏ case.͏͏ He͏͏ allegedly͏͏ held͏͏ the͏͏ roles͏͏ of͏͏ financial͏͏ manager͏͏ and͏͏ general͏͏ manager͏͏ at͏͏ Scootsy͏͏ when͏͏ he͏͏ illicitly͏͏ transferred͏͏ INR͏͏ 32.67͏͏ Cr͏͏ to͏͏ RPGS͏͏ Associates,͏͏ one͏͏ of͏͏ Swiggy’s͏͏ vendors.
Multiple͏͏ Vendors͏͏ Implicated͏͏ in͏͏ the͏͏ Case:
The͏͏ report͏͏ indicates͏͏ that͏͏ several͏͏ other͏͏ Swiggy͏͏ vendors,͏͏ including͏͏ Fresh͏͏ Farm͏͏ Agro,͏͏ First͏͏ Choice͏͏ Grocery,͏͏ and͏͏ Packingocity,͏͏ along͏͏ with͏͏ their͏͏ executives,͏͏ are͏͏ co-accused͏͏ in͏͏ the͏͏ case.
Swiggy Faces͏͏ Additional͏͏ Challenges:
This͏͏ development͏͏ comes͏͏ as͏͏ Swiggy͏͏ faces͏͏ a͏͏ dual͏͏ challenge͏͏ of͏͏ potential͏͏ GST͏͏ liabilities͏͏ exceeding͏͏ INR͏͏ 326͏͏ Cr͏͏ and͏͏ allegations͏͏ of͏͏ child͏͏ labour,͏͏ all͏͏ in͏͏ the͏͏ lead-up͏͏ to͏͏ its͏͏ public͏͏ listing.
Meanwhile,͏͏ the͏͏ startup͏͏ has͏͏ received͏͏ approval͏͏ from͏͏ its͏͏ shareholders͏͏ to͏͏ expand͏͏ the͏͏ size͏͏ of͏͏ the͏͏ fresh͏͏ issue͏͏ of͏͏ shares͏͏ in͏͏ its͏͏ IPO͏͏ to͏͏ INR͏͏ 5,000͏͏ Cr.
Over͏͏ the͏͏ past͏͏ few͏͏ weeks,͏͏ investors͏͏ have͏͏ flocked͏͏ to͏͏ acquire͏͏ Swiggy͏͏ shares,͏͏ eager͏͏ to͏͏ secure͏͏ substantial͏͏ profits͏͏ following͏͏ the͏͏ company’s͏͏ debut͏͏ on͏͏ Dalal͏͏ Street.
Ahead͏͏ of͏͏ the͏͏ highly͏͏ anticipated͏͏ IPO,͏͏ US-based͏͏ asset͏͏ manager͏͏ Invesco͏͏ raised͏͏ the͏͏ foodtech͏͏ major’s͏͏ valuation͏͏ to͏͏ $13.3͏͏ billion,͏͏ reflecting͏͏ a͏͏ 25%͏͏ increase͏͏ from͏͏ the͏͏ last͏͏ fair͏͏ value͏͏ reported͏͏ by͏͏ the͏͏ investor.
