ShopClues’ board has hit back against co-founder Sandeep Aggarwal and said that he is engaged in a personal vendetta against Radhika Aggarwal and Sanjay Sethi. “It is very disappointing to see an ex-founder, who disassociated from the company for his criminal wrong doings, is now engaged in a personal vendetta on a public forum,” a statement from the board added.
Sandeep Aggarwal had taken to Facebook and alleged that his wife Radhika had ousted him from the company illegally without his knowledge. He added that his wife “fraudulently…changed (his) voting rights” at ShopClues without his knowledge.
However, the ShopClues board also provided a timeline of events which led to the departure of Sandeep Aggarwal when he was arrested by the Federal Bureau of Investigation (FBI) for insider trading. FBI agents had arrested Sandeep Aggarwal on insider trading charges in July 2013 and he had been charged with one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud.
The board added that Sandeep and the company got into an agreement that if he had pled guilty or was convicted for insider trading, he would have no operating role in the company and would relinquish the right to be a board director or have any active ability to elect or remove any non-CEO board directors. Sandeep Aggarwal would also cease to be a consultant for the company.
Sandeep later pleaded guilty to insider trading charges in November 2013 in a federal court. Sanjay Sethi then took over Sandeep as ShopClues CEO in Late 2013. Sandeep then went on to form Droom in 2015—an online automobile marketplace.
ShopClues has raised over $200 million from multiple investors like Tiger Global, Helion Ventures, Nexus Venture among others. In January last year, it raised $100 million in a Series E round. At that time, the company said it plans to float an IPO by 2017. It also raised another $100 million in January 2015 through multiple funding rounds.