Accel-backed agritech startup Mooofarm has issued a response to the allegations of embezzlement, revenue inflation, and fake employees raised by its former finance head, Vineet Bhati. The company has clarified that its own criminal complaint predated Bhati’s allegations.
Denial of Bhati’s Claims
Mooofarm firmly denies Bhati’s claims and reiterates the allegations raised in its complaint against him. According to the company, Bhati was the sole authority for making payments, and the founders were unaware of any irregularities. The company asserts that its financials have been fully audited until 2021-22 and that it complies with all required processes.
Mooofarm Timeline of Complaints and Police Filing
Both parties’ complaints are yet to be accepted as first information reports (FIRs). However, Mooofarm maintains that it filed a preliminary complaint against Bhati on July 10, 2023. Subsequently, the company gathered more information and filed a more detailed complaint with the Gurugram police on July 20, 2023.
Bhati’s Counterclaims and Investigation Findings
Bhati had previously countered Mooofarm’s allegations, stating that his police complaint, dated July 13, 2023, was filed before Mooofarm’s complaint. However, Mooofarm refutes this and maintains that their preliminary complaint predated Bhati’s. The company’s preliminary complaint was based on an analysis of Bhati’s transactions, which revealed several transfers from the company’s account to his personal accounts, and then to investment brokerage accounts.
Financial Details and Uncertain Recovery
Mooofarm accuses Bhati of using the company’s funds to invest in derivatives and options, with sources close to the company claiming a total withdrawal of over INR 45 Cr. It remains unclear if the company will be able to recover any of the alleged embezzled funds. Despite significant revenue growth, Mooofarm reported losses for FY22, raising further concerns amid the ongoing controversy.
About Mooofarm:
Founded in 2019, Mooofarm is an agritech startup that offers a full-stack platform for dairy farmers, providing services ranging from buying cattle and livestock to telehealth and financing assistance. The Gurugram-based company has secured over $16 million in funding from investors such as Accel, Aavishkaar Capital, Aditya Birla Ventures, Rockstart, and Navus.
About Vineet Bhati:
Vineet Bhati, former finance head of Mooofarm, raised allegations of embezzlement and revenue inflation against the company’s management. He was an early employee and shareholder but resigned earlier this year.
Disclaimer: This article is based on publicly available information and does not imply guilt or innocence on the part of any involved parties. The matter is still under investigation and subject to legal proceedings.
