Home security platform MyGate and property listing portal NoBroker, both backed by alternative investments firm Tiger Global Management, have initiated legal action against each other over alleged theft of confidential information.
NoBroker operates a society management system called NoBrokerHood, which competes directly with MyGate’s primary business. Both companies are headquartered in Bengaluru.
In two separate first information reports (FIRs), which have been reviewed by TechCircle, both companies have accused each other of resorting to unethical practices to steal confidential customer data and misusing it to take business advantage.
MyGate, which filed a complaint with the cyber crime division of Bengaluru police, accused NoBroker of stealing customer data and misleading them with false information regarding its products and services.
“Over the past several months, we have received numerous complaints from our employees as well as our customers regarding NoBroker’s unethical and illegal acts. We were informed that NoBroker is stealing contact details of our customers; threatening and attempting to bribe our employees with an intent to illegally obtain confidential information; making unsolicited calls to MyGate’s customers by using the stolen data; and spreading false/baseless rumours about MyGate services whilst unethically creating business opportunities for themselves,” Vijay Arisetty, CEO and cofounder of MyGate, said in a statement.
He said the company issued a legal notice to NoBroker on June 12, which the latter did not respond to. MyGate then filed an official complaint with the police on June 19.
On June 28, NoBroker filed a counter FIR, accusing MyGate of accessing and misusing its customer data, and planting employees in its office to steal confidential information.
“It is disturbing to see that MyGate is having to resort to such dishonorable antics to survive competition. Our product offerings are way superior to MyGate and it is easy to see that MyGate is finding it hard to cope with as they've been rapidly losing market share. We have concrete proof and call recordings of how they have stolen our data and we had to file a police complaint against them,” NoBroker said in an official statement.
MyGate, run by Vivish Technologies, uses artificial intelligence to automate manual security tasks of gated societies such as visitor identification, home deliveries, vehicle management and child safety.
Its last known funding round was in October 2019, when it raised $56 million from Tencent Holdings, Tiger Global and JS Capital Management. In October 2018, the company raised $8.6 million in a Series A round and $2.5 million in its first round of external funding in January 2018 from Prime Venture Partners.
NoBroker provides solutions for real estate transactions, including rental, sale and purchase of properties. It was one of the first few startups to connect landlords and tenants without a broker.
It launched a visitor and community management app named NoBrokerHood last year, which was strengthened with the acquisition of apartment management solutions firm Society Connect in February 2020.
In its most recent fundraise, NoBroker received $30 million as part of a Series D funding round from returning investor General Atlantic. The capital infusion was an addition to the $50 million that Tiger Global had pumped in, in October 2019. The company has raised a total of $80 million till date.