Nykaa, a fashion and beauty e-commerce platform, has sued Gopal Asthana, its former chief business officer, for breaching confidentiality and misusing the brand’s data, which may harm the company. Asthana is currently heading Tata Cliq, Tata’s fashion e-commerce platform.
Asthana had allegedly reached out to many Nykaa employees who worked under him during his tenure to join Tata Cliq, according to a report by The Economic Times. Reportedly, some of these employees joined Tata Cliq last year.
Nykaa petitions Bombay High Court
Nykaa, in its petition to the Bombay High Court, said that it has enough remuneration for its former chief business officer, which includes long-term incentives and stock options. The company asked for a refund of ₹19 crore of employee stock options and ₹5 crore for loss of goodwill and other business measures, the report said.
It added that the beauty brand has requested the court to stop Asthana from using Nykaa’s data for Tata Cliq’s business. On Wednesday, the high court presented an interim order, asking him not to hire employees from Nykaa to Tata Cliq. Nykaa has, however, not made Tata Cliq a part of the case.
Asthana served as chief business officer at Nykaa for four years and was on the company’s board. Nykaa has alleged that, due to his position, Asthana had private and confidential company data.
The Falguni Nayar-led brand also made an exception for its former chief business officer to join a rival company regardless of having a non-compete agreement. The allegations are “incorrect, and they will get established in the arbitration,” the report said, quoting Asthana.
“However, since the matter is sub-judice, I can’t comment on the same. The matter is between my former employer and me, and my current employer is not a party in the matter and, therefore, best left out of the discussion,” he added.
However, neither Nykaa nor Tata Cliq commented on the report. Asthana joined Tata Cliq in 2023. The competitors in this space include Nykaa, Tata Cliq, Amazon Fashion, Ajio and Tira from Reliance, and Flipkart’s Myntra.
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