 "Nykaa sues ex-CBO Gopal Asthana for breaching confidentiality, claiming he poached their employees for Tata Cliq, seeking compensation.")
Nykaa, a leading beauty and fashion retailer, has filed a lawsuit against its former Chief Business Officer, Gopal Asthana, now with Tata Cliq. The company accuses him of breaching confidentiality and attempting to lure former employees to join Tata Cliq, where he currently serves as head. Nykaa is seeking a refund of nearly Rs 19 crore for stock options and an additional Rs 5 crore. The Bombay High Court has temporarily banned Asthana from recruiting Nykaa executives. In the latest financial report, Nykaa reported a significant increase in gross merchandise value and revenue, showcasing strong performance in the beauty sector, while Tata Cliq reported much lower revenue figures.
Nykaa Takes Legal Action Against Former Executive Over Alleged Confidentiality Breach
In a recent development, beauty and fashion giant Nykaa has filed a lawsuit against its former Chief Business Officer, Gopal Asthana, who is now working with Tata Cliq. The lawsuit, as reported by The Economic Times, accuses Asthana of breaching confidentiality and attempting to undermine Nykaa’s operations.
Nykaa claims that Asthana reached out to former employees, encouraging them to join Tata Cliq, which has reportedly led to some employees changing jobs over the past year. Asthana has been heading Tata Cliq since July last year and has more than 20 years of experience in the retail industry, having previously worked with Future Group and Shoppers Stop.
In this legal battle, Nykaa is seeking a refund of around Rs 19 crore for employee stock options that Asthana utilized, along with an additional Rs 5 crore. The Bombay High Court has issued an interim order that prohibits Asthana from recruiting Nykaa’s executives for Tata Cliq during this period. Notably, the lawsuit does not mention Tata Digital.
On the financial front, Nykaa reported a robust performance in the first quarter of FY25, with a consolidated gross merchandise value (GMV) increasing by 25% year-on-year to Rs 3,321 crore. This growth was primarily driven by a 28% rise in beauty sales. Conversely, Tata Cliq reported a revenue of Rs 78.5 crore in FY23 according to Tata Sons’ annual report.
Stay tuned for more updates on this developing story and insights into how it may impact both companies.
Tags: Nykaa lawsuit, Gopal Asthana, Tata Cliq, confidentiality breach, Nykaa performance, retail industry news, business news, employee stock options.
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What happened with Nykaa and its former official?
Nykaa is suing a former top official for breaking their contract and trying to take other employees with them to a new job. -
Why is Nykaa taking legal action?
They believe the former official violated their contract, which is why they are seeking legal action. -
What does "poaching" mean in this context?
Poaching means trying to hire away employees from a company, which Nykaa claims the former official is doing. -
How does this affect Nykaa’s business?
This situation can create uncertainty and concern among employees and may impact the company’s team and operations. - What could happen if Nykaa wins the lawsuit?
If Nykaa wins, they may receive compensation and could prevent the former official from taking certain actions, like hiring their employees.
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