Idiotic Media has also demanded a compensation of Rs 5 lakh from Trail for causing mental agony and harassment.
ET has reviewed the copy of the legal notice and the email sent to the agency and its lawyer on June 21.
Other recipients of the legal notice include Shreya Goyal and TRAIL’s Siddhartha Vashisht, who oversaw the linkage between the two firms.
“We have sent a legal notice to Bimal Karthik Rebba on June 21 through e-mail for non-payment of dues amounting to Rs 47 lakh. Though they have not yet accepted the notice, we will approach the NCLT after July 6,” a spokesperson for Idiotic Media said in a statement. “We strongly believe that the only recourse available to us now is to approach the Indian courts and seek justice.”
Trail was done before
Forensic team of EY India investigatedwhich was allegedly probing related party transactions, misreporting of business numbers and other financial irregularities, ET reported on March 12.
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ET first reported on June 27 that Trell
A section of the content creators had not paid their dues From last 6-7 months.
“Trail has not received any legal notice from the seller. The company has paid over 90% of all its vendors, except for a few where there are disputes over delivery. These are contractual discussions and are confidential…,” a spokesperson for Trail said in a statement.
Idiotic Media said it ran an influencer marketing campaign for Trail in December and enlisted 28 creators to promote its online marketplace Trail Shop.
Trail promised the agency over an email exchange on December 9 that payments would be processed within 45 days of the campaign’s completion, which was in December.
ET has reviewed a copy of the email exchange between the agency and the company.
According to the legal notice, the agency on the trail owes Rs 40.61 lakh for the campaign and Rs 7.31 lakh as GST.
In March, Creatify “tried to make several contacts” with Traill and his team regarding non-payment of bills, but the company is avoiding their calls, according to a legal notice.
The agency said that after repeated attempts, TRAIL had promised to pay the full amount by April, but so far no payment has been received.
According to the agency, on July 1, Pulkit Aggarwal, cofounder of Trail, in a text message exchange with a senior executive of the agency, asked him to return for 15 days as it was a finance consultant to help streamline payments. Was in the middle of hiring.
The term of the legal notice expires on July 6 (the notice was sent on June 21), after which the agency will take further action.
Launched as a lifestyle-focused short video app, Trail gained prominence when the video app boomed in 2020 due to a ban on the Chinese short-video app TikTok.
The agency began working with Trail in the same year.
At its core, Trail wanted to build a large base of content creators who would fuel their video commerce ambitions by selling products to Tier II and Tier III audiences on the Trail Shop. The marketplace has brands like Lakme, Mamaearth, Maybelline and Wow skincare.
The EY Forensics team was probing related party transactions and other financial irregularities alleged by its founders.
in the same month,
Trail lays off 300 employees amid growing uncertainty More talk of a funding round stalling around the company. Another 100 employees have since been laid off or laid off.
trail too
AppsForBharat. sold its 10% stake in For an existing investor, Mirae Asset. ET reported on April 5 that Middle East investment fund MSA Novo also bought shares of AppsForBharat from a video and shopping app led by influencers in a secondary transaction of $9-$9.5 million.
Trail had raised more than $62 million as of July last year from Mirae Asset, H&M Group and LB Investments, as well as Sequoia’s Surge Startup Accelerator program.