Pristyn Care has suspended both founders of Lybrate, which the former had acquired 12 months ago.
Pristyn Care suspended Rahul Narang and Saurabh Arora, a day after they served a default notice demanding outstanding payment resulting from the acquisition of their company, according to a Mint report.
The company, however, has denied the allegations of defaults.
“Pristyn Care has and shall continue to act in accordance with contractual terms and conditions. We would like to emphasize that Pristyn Care has not defaulted on any of its contractual obligations,” a Pristyn Care spokesperson said in a statement. “We would not like to say anything further at this stage.”
As per sources, the dispute happened over the part of shares to be bought by Pristyn Care and the duo served notice to the Gurugram-based firm early this week. While investors received the proceeds from the deal, the two founders received only a part payment. As per the Lybrate’s founders, Pristyn Care failed to acquire the second tranche of shares in the former.
After months of discussion, Pristyn Care announced the acquisition of Lybrate in June last year. Entrackr was the first to report about the deal.
Entrackr tried to contact Narang and Arora for comments. We’ll update the post in case we hear from them.
Backed by the likes of Ratan Tata, Tiger Global and Nexus Venture Partners, Lybrate had last raised $3 million from undisclosed investors in 2017. The startup raised close to $15 million since its inception in 2014.
Pristyn Care is expected to close FY23 with a revenue of Rs 700 crore from Rs 350 crore in FY22. The company, however, has not filed its annual financial for FY22 and FY23. In its last audited report, it recorded a 3.7X growth in its operating revenue to Rs 96 crore in FY21.
