Startup Doodhwala in Trouble, FIR against the Founders for Crores in Dues

• In yet another startup story going bust, Doodhwala shut its operations last month after unable to sustain its business

• The company allegedly owes crores to employees and vendors after another online startup FreshToHome took over its operations

BENGALURU : A group of vendors has filed an FIR against Doodhwala founders Aakash Agarwal and Ebrahim Akbari, alleging the milk delivery startup owns them crores in dues.

In yet another startup story going bust, Doodhwala shut its operations last month after unable to sustain its business.

According to a report in Inc42 late Monday, the company allegedly owes crores to employees and vendors after another online startup FreshToHome took over its operations.

The FIR was filed at the Ulsoor Police Station here, said the report.

A vendor was quoted as saying in the report that Doodhwala allegedly owes ₹6-7 crore to around 30-35 vendors.

According to them, Agarwal and Akbari are absconding as their phones are continuously switched off.

Unable to get their money, some vendors stopped supplying products to the company in September due to unpaid dues.

The VC-funded milk delivery startup Doodhwala was yet to comment over the allegations.

In October, Doodhwala said it was discontinuing its services due to unforeseen circumstances.

In an update on its website, cofounder and CEO Akbari said that FreshToHome via FTHDaily will continue to service Doodhwala's customer base in Bengaluru.

The subscription-based hyperlocal delivery startup FreshToHome was founded in 2015 by Shan Kadavil and Mathew Joseph and claims to have crossed ₹200 crore in annualised direct to consumer sales.

(Except for the headline, this story has not been edited by Scrabbl staff and is published from a syndicated feed.)