On July 7 a tweet from an anonymous Twitter handle had, alleged that Rocket Internet, the parent investor in Jabong, is pursuing a case against Sinha for siphoning off more than Rs 100 crore from the company. The tweet was later deleted.
Praveen Sinha said,
“Firstly, I have never been informed by Jabong’s investors of any PwC report. I came to know of it recently through a media query, to which I was not even given a day to respond.”
He added that
“people at the centre of such false allegations suffer because their reputations take a hit. Post the report, I have called many people to get more information, and I have come to understand that though there was indeed an investigation, nothing had come out of it to conclude any personal gains [were made by me] as is being alleged by certain quarters.”
Praveen Sinha is the founding team member and former managing director of fashion e-retailer Jabong. He has initiated legal action against Twitter account holder Unicon Baba who made allegations of corporate governance violations and financial fraud against Sinha during his reign at the e-commerce firm.
Jabong, Rocket Internet’s biggest bet in India, has been doing well in the niche segment of online fashion sales. In terms of revenue, it fared better than its closest rival Myntra in 2014-15. It posted Rs 1,085 crore revenues while Myntra’s revenue during the same period was Rs 773 crore. According to several recent media reports, Jabong has re-initiated talks with a number of internet companies including Snapdeal, Alibaba, Flipkart-owned Myntra, and Aditya Birla’s e-commerce venture Abof besides Future Group for a possible sale of the firm.
This comes at a time when the investors are believed to have found a buyer for the company after looking for one for the past 12-18 months. “As regards the timing of the release, it is indeed extremely unfortunate that this issue is being sensationalised at a time when multiple positive developments were shaping up for the companies in question. I hope these developments will not be adversely impacted by the false and baseless news reports. I am sending you these prefatory thoughts as I am currently travelling,” Sinha added.