FirstCry founder under IT scanner over alleged $50mn tax evasion
What's the story
Supam Maheshwari, founder of FirstCry, Globalbees Brands, and Xpressbees, is facing an investigation by the Income Tax Department of India for allegedly evading over $50 million in taxes.
According to Bloomberg, the probe focuses on equity transactions within the privately held FirstCry.
At least six investors apart from Maheshwari, including ChrysCapital Management and Sunil Bharti Mittal's family office, have also received inquiries regarding their involvement in these transactions.
Details
Maheshwari is in discussions to resolve the issue
Maheshwari has been issued notices by the IT department and is currently in discussions to resolve the matter.
No official comments have been made by any of the parties involved in the investigation. Notably, FirstCry achieved profitability in the financial year ending March 31, 2021, after years of losses.
As one of the few Indian start-ups to reach operational profitability, FirstCry is eyeing entry into the IPO market. The tax evasion probe could impact the company's IPO plans.
What Next?
Who is Supam Maheshwari?
Maheshwari is a first-generation entrepreneur who is known for being FirstCry's co-founder and CEO.
Born in 1974, he studied mechanical engineering at Delhi College of Engineering. He later obtained a management degree from IIM-Ahmedabad.
Soon after that, Maheshwari started his first company called Brainvisa Technologies in 2000. It was acquired by US-based Indecomm Global for $25 million in 2007.
In 2010, he co-founded FirstCry. He has been its CEO since then.