Nykaa, the fashion and beauty e-commerce platform, has filed a lawsuit against its former chief business officer, Gopal Asthana, accusing him of breaching confidentiality and misusing the company’s data, which could potentially harm the business. Asthana is now the head of Tata Cliq, Tata’s fashion e-commerce division.
According to a report by The Economic Times, Asthana allegedly approached several Nykaa employees who worked under him during his tenure, encouraging them to join Tata Cliq. Some of these employees reportedly made the switch last year.
Nykaa takes legal action in Bombay High Court
In its petition to the Bombay High Court, Nykaa stated that it had provided Asthana with substantial compensation, including long-term incentives and stock options. The company is seeking a refund of ₹19 crore in employee stock options and ₹5 crore for loss of goodwill and other damages.
The petition also requested that the court prevent Asthana from using Nykaa’s data to benefit Tata Cliq’s business. On Wednesday, the high court issued an interim order barring Asthana from recruiting Nykaa employees to Tata Cliq. However, Tata Cliq has not been made a party in the case.
Asthana, who served as Nykaa’s chief business officer for four years and was on the company’s board, allegedly had access to confidential company information due to his role. Despite having a non-compete agreement, Nykaa had made an exception allowing him to join a rival company.
Asthana denied the allegations, stating that they are “incorrect and will be clarified through arbitration.” He added, “Since the matter is sub-judice, I cannot comment further. This is between my former employer and me, and my current employer is not involved in the matter and should not be included in the discussion.”
Neither Nykaa nor Tata Cliq commented on the issue. Asthana joined Tata Cliq in 2023. Key competitors in the fashion e-commerce space include Nykaa, Tata Cliq, Amazon Fashion, Ajio, Reliance’s Tira, and Flipkart’s Myntra.
