Cars24, an online marketplace for buying and selling used cars, has been slapped with legal notices over non-payment of dues. In another development, BAC Acquisitions (BACQ) is in talks with Essel group to buy its mutual fund business.
Cars24 faces legal action over non-payment of dues
Gurugram-based Cars24, an online marketplace for buying and selling used cars, has been served legal notices by almost half-a-dozen landlords for non-payment of rents for months, The Economic Times reported.
The startup has been accused of breach of contract for terminating leases before the lock-in period ended. It has also shut stores at various places violating the lease agreements, the report said. In Delhi alone, Cars24 has shuttered about a dozen outlets.
In May, it was also reported that the company has laid off over 300 employees across consumer finance, operations, and marketing teams, as it struggles to raise a bigger funding round. Cars24 has so far reportedly raised $100 million in funding.
Sachin Bansal-led BACQ eyes Essel MF
Flipkart co-founder Sachin Bansal-led BAC Acquisitions (BACQ) is in talks with Essel group to buy its mutual fund business, Business Standard reported.
“We are in talks with a few interested parties. We don’t want to give out names, as no deal has been finalised yet,” Essel Finance told the newspaper.
Srei Infrastructure Finance is also in the fray to acquire Essel Mutual Fund but no deal has materialised between the two, owing to differences over the valuation.