Mumbai’s Economic Offences Wing (EOW) received a criminal complaint from invoice financing platform TradeCred on June 26, 2025, accusing B2B startup Bizongo and its leadership—including founders Sachin Agarwal and Ankit Tomar—along with investor representatives from Accel, B Capital, Chiratae, IFC, and others, of misappropriating ₹69 crore via invoice discounting arrangements turn0search1
🔍 Allegations in Focus
TradeCred claims that Bizongo sold invoices worth ₹256 crore via its platform, which were to be funded through escrow. However, Bizongo allegedly diverted customer payments into its own accounts, effectively double-claiming funds—once via upfront invoice sales and again on invoice realization—defrauding TradeCred’s investors
The complaint seeks charges under sections of the Bharatiya Nyaya Sanhita 2023, including criminal conspiracy, cheating, breach of trust, and deliberate concealment of assets. TradeCred has also invoked the Negotiable Instruments Act over dishonoured cheques. With penalties and overdue charges, the total dispute stood at ₹81 crore, and Bizongo faces potential liability of ₹123 crore—accounting for audit adjustments
🏦 Bizongo’s Response
Bizongo refutes the misappropriation claims, stating it repaid more than ₹184 crore into a common escrow account, reducing its outstanding debt from ₹250 crore to around ₹66 crore. The startup also reportedly offered 10% equity as settlement and emphasized that its B2B raw materials vertical became profitable by April–June 2025
Additionally, Bizongo initiated investigations into prior internal fraud (₹21 crore in FY24) and engaged investor oversight following auditor concerns flagged by BSR & Co LLP. It subsequently exited the supply chain finance vertical and restructured under new leadership with fresh governance measures
📈 Why It Matters
- Investor Confidence at Stake: Allegations involve major VC players, potentially affecting startup valuations and governance standards.
- Regulatory Scrutiny Escalates: The case underscores growing regulatory focus on Indian fintech and invoice financing practices.
- Governance & Transparency Ripple: Drives home the importance of internal controls, escrow mechanisms, and third-party audits in startup financial operations.
🔮 What’s Next?
- EOW Investigation & FIR Registration: SEBI and Mumbai EOW will delve into the complaint and audit trails.
- Settlement Talks Underway: Bizongo awaits TradeCred’s response to its settlement and equity offer.
- Audit Finalization: Completion of FY24 audit is expected soon, clarifying liabilities and controls.
- Legal Proceedings: Potential prosecutions, cheque dishonour suits, or negotiated resolution may follow.
✅ Bottom Line
TradeCred’s ₹69 crore criminal complaint against Bizongo highlights alleged invoice-finance manipulation and raises serious governance questions in India’s startup ecosystem. With Bizongo pushing back and debt largely repaid, the outcome depends on EOW findings, settlement resolution, and audit clarity—setting a precedent for financial transparency in fintech.
