In 2020, Nestaway was valued at Rs 1800 crore and had raised Rs 700 crore in funding. However, the company was sold for a meager Rs 90 crore, marking a dramatic decline in its valuation.
During the COVID-19 pandemic, Nestaway faced significant uncertainty as all co-founders except Amrendra Sahu exited the company. Nestaway managed to stay afloat by selling non-core assets and securing enough cash reserves to sustain operations for at least two more years.
Even after receiving a Rs 50 crore investment proposal from Gruhas (the investment arm of Zerodha’s Nikhil Kamath), the company’s lead investor, Tiger Global, allegedly pushed for a distress sale at a staggering 80% loss.
The matter has now reached the courts, with the Odisha High Court set to review the case on January 9. The outcome could have far-reaching implications for investor-founder dynamics and corporate governance in India’s startup ecosystem.
Amarendra Sahu, has filed a lawsuit against Tiger Global Management, Goldman Sachs, Chiratae Ventures, and Schroders Adveq in relation to the company's sale to Aurum PropTech. He has charged them with criminal conspiracy, intimidation, cheating, and forgery.
Founded in 2015, Nestaway Technologies was a pioneer in the proptech industry in India. The platform attracted large investments from international companies like Tiger Global and Goldman Sachs with the goal of streamlining urban rental housing.
