Healthcare unicorn Pristyn Care has suspended Rahul Narang and Saurabh Arora, the founders of Lybrate Inc, over accounting issues, said people aware of the development on condition of anonymity.

According to sources, the dispute has risen as Pristyn Care wants the Lybrate founders, Narang and Arora, to account for the money already transferred, which was over and above the salary the duo was given post the acquisition. The founders had joined Pristyn Care following the acquisition.

“The contracts of both founders of Lybrate Rahul Narang and Saurabh Arora have not yet been terminated but the former founders are placed under suspension pending investigation,” said the source.

Healthtech platform Pristyn Care had suspended Rahul Narang and Saurabh Arora, the founders of Lybrate Inc., a day after the duo served a default notice earlier this week demanding outstanding payment resulting from Pristyn Care’s acquisition of their company in June 2022, according to media reports. Arora and Narang served a notice to Pristyn Care’s operating entity GHV Advanced Care alleging that the company had failed to acquire the second tranche of shares in Lybrate, as agreed in the original share-purchase agreement.

“Pristyn Care has and shall continue to act in accordance with the contractual terms and conditions. Pristyn Care has not defaulted on any of its contractual obligations. At this point, it would be inappropriate to comment on the matter.” said Pristyn Care.

businessline reached out to Narang and Arora who have yet respond.

Pristyn Care, backed by Tiger Global, runs a network of hospitals and clinics through partners and acquired Lybrate to enter the primary-care segment. While the deal size was not disclosed, it was said to be $20-30 million, including payments to other investors of Lybrate, such as Nexus Venture Partners, Tiger Global Management, and Ratan Tata’s RNT Associates. Both founders joined Pristyn Care following the acquisition.

Venture Partners, Lybrate had last raised $3 million from undisclosed investors in 2017. The startup raised close to $15 million since its inception in 2014.

Pristyn Care achieved unicorn status in April 2021. Its other investors include Peak XV Partners (formerly Sequoia Capital India), Tiger Global, Hummingbird Ventures and Epiq Capital. At that time, the company said it had raised around $150 million from external investors.

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