Ecommerce, News

Shopclues business will not be affected says the company, post the founder’s arrest reports

The recent reports on the arrest of Sandeep Aggarwal, founder of, who was a former wall street analyst did came as a shocker for many, as the FBI has alleged him on the charges of tipping Richard Lee, a SAC Capital portfolio manager about a pending deal between Yahoo and Microsoft in 2009. This was an incident prior Sandeep started Shopclues in 2011 after coming back to India.

Currently Sandeep has been released on bond by the authorities, mentions the latest release by Shopclues. The press release mentions that the charges contained in the complaint are merely accusations, and the defendant (Sandeep Aggarwal) will be presumed innocent unless and until proven guilty.

According to report on Bloomberg, Sandeep was ordered release on USD 500,000 bond and he has to appear in federal court in New York August 2. Aggarwal was also ordered to surrender his passport, visa and green card and remain in custody with his wife and can only travel to New York for his court appearance said his attorney Sanaz Nikaein.

According to Shopclues management, the case is related to the vent that had occurred prior the inception of Shopclues so it does not involve the business of ShopClues and the company has also assured its stakeholders that Shopclues will remain fully committed to its future plans and expects to maintain the current growth momentum.

Sanjay Sethi, Co-Founder said, “ShopClues is a company led by strong management team and sound business fundamentals. We shall continue to provide best-in-class service to our customers, merchants and all stakeholders.”

The company is already having just another day at addressing customer issues on Social media.

Earlier Sandeep was arrested by FBI agents in San Jose, California, as part of the government’s probe of insider trading at hedge funds led by Preet Bharara. Also, the Preet Bharara’s office  has charged Sandeep with one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud for passing along an inside tip about a pending deal. Aggarwal spoke to about 14 traders or portfolio managers at various hedge funds about the Microsoft-Yahoo partnership, the U.S. said.

Richard Lee, the main accused has already pleaded guilty to conspiracy and securities fraud. Till now 83 people have been charged by Manhattan U.S. Attorney Preet Bharara’s office with insider trading, with 74 either pleading guilty or being convicted at trial, as per Bloomberg.

Shopclues which was founded by Sandeep Aggarwal in 2011 along-with other founding and senior team members including Sanjay Sethi, Mrinal Chatterjee, Devesh Rai, Radhika Aggarwal and Vishal Sharma, was surely going great while processing close to 10,000 orders daily or approx run-rate of 3.5 million order per annum. It is backed by PE and VC funding by industry stalwarts like Helion Venture Partners, Nexus and Tokyo-based Netprice and has close to 350 employees in India. There are around 1.8 Million SKUs sold at ShopClues with total listed Merchandize value of more than INR 4500 Cr.

So now with this unwanted situation which the growing online marketplace Shopclues has got into, it would surely be a great test of skills for its team against the odds. The case which has yet to be concluded might affect the future strategies of Shopclues and in turn the entire growing ecommerce and online sector in India, of which Shopclues is a key player and so is Sandeep.

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