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Mensa Brands Founder Ananth Narayanan
Mensa Brands, the Indian roll-up e-commerce unicorn, is facing a legal battle with cosmetics maker Bo International over allegations of failure to fulfil its obligations under a business transfer agreement. Bo International has filed a lawsuit against Mensa Brands, claiming that the company did not meet its commitments as per the agreement signed in 2021.
According to the agreement, Mensa Brands was supposed to make two payments to Bo International. The first payment of Rs 10.2 crore was scheduled to be made six months after the deal was signed. The second payment was to be a revenue-linked consideration, calculated as a percentage of the sales of the product called Florona until 2026.
Bo International, in its petition filed by CEO Aayush Gupta, intends to initiate arbitration proceedings against Mensa Brands. The company seeks a court order to maintain the status quo of the agreement for the sale of Florona. Additionally, Gupta has requested a deposit of Rs 26.95 crore, as reported by Moneycontrol.
According to the plea documents, Bo International entered into an agreement with Mensa's subsidiary, Caleum Arpit, in December 2021 to purchase Florona. In addition to the payment terms, the agreement also outlined Bo International's responsibilities, which included manufacturing, storing, and delivering Florona products to Mensa Brands.
Mensa Brands has denied the allegations made by Bo International and Aayush Gupta, dismissing them as baseless complaints and litigations. The revenue-linked consideration has become a contentious issue between the two companies, leading to this legal dispute.
As the legal battle unfolds, the outcome remains uncertain. Both parties will present their arguments and evidence during the arbitration proceedings, and it will ultimately be up to the court to decide whether Mensa Brands fulfilled its obligations or if Bo International's claims hold merit.
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