Influencer-driven social commerce app Trell, which has been under investigation for financial issues, has sold a 7-8 per cent share in AppsForBharat to one of its existing investors, Mirae Asset, as it runs out of cash, according to numerous people briefed on the subject.
According to its most recent shareholding, Mirae controls over 11% of Trell. On March 12, ET first reported on an ongoing investigation into the company’s books of accounts. Trell’s alleged related-party transactions, erroneous reporting of business numbers, and other financial irregularities are being investigated by an EY India forensic team.
The $7-8 million transaction is an attempt by the company to stay afloat despite the startup’s struggles.According to another source, the company laid off 200-300 people.
Prashant Sachan, one of the Trell founders, established appsForBharat, a product studio for spiritual and devotional content. Sequoia Capital, Elevation Capital, and Matrix Partners, among others, have invested in it. Last year, Sachan departed Trell and sold his whole ownership.
Trell was in talks for a new round of funding last year, but it was halted after a whistleblower raised concerns about financial mismanagement at the Bengaluru-based business with Sequoia Capital. According to sources, Sequoia, a common investor in both Trell and AppsForBharat, launched an investigation into Trell after the business got a term sheet from BestsellerIndia, which owns brands including as Vero Moda, Jack & Jones, and Only, valued at $750 million, up from $120 million.
Trell’s cofounder Pulkit Agarwal stated in an angry message to investors, as reported by ET on March 21, that one or two investors had started the investigation without mentioning Sequoia Capital India, arguing that it was not authorised by the board.
“A handshake has happened between Trell and its investors and Pulkit Agarwal–one of the founders, is now cooperating with investors on the probe and its outcome,” a source familiar with the situation stated. Trell, as ET previously reported, has embarked on a massive cost-cutting drive, with big layoffs already in place.
Published By : Revathy G Sanal
Edited By : Subbuthai Padma
