When VideoVerse announced its acquisition in September 2025, it felt like a victory for startups across India. VideoVerse was a simple clipping service, but after years of pitching to startup incubators and clients, the company successfully exited for $250 million.
The acquirer is Minute Media, an international sports publisher split between New York and Tel Aviv, with plans to expand VideoVerse’s clipping software beyond its niche market in India and into the lucrative world of international sports.
The deal was canceled less than a year after it was announced.
Investors are still waiting for a share of $250 million in profits, and founder Vinayak Shrivastav is now at the center of multiple lawsuits. Even Minute Media, which it acquired, appears to be withdrawing. In May, the company announced it was terminating its contract with VideoVerse, emphasizing that the two companies continued to operate as separate entities even after the acquisition was completed.
In an interview with TechCrunch, a Minute Media representative said, “In particular, following the discovery of significant discrepancies in the representation of VideoVerse, Minute Media has decided to terminate its agreement with the company.”
If the allegations are true, this is more than just a failure to reach an agreement. Creditors and investors have painted a picture of a CEO who racked up cash-generating debt and backroom deals under the guise of a successful business, repeating lies until the pretense became unbearable. The results were a startling reminder of the limits of due diligence and how much startup businesses still rely on trust.
The sheer number of lawsuits shows that there is currently a lack of trust. Bluestone Capital, which backed VideoVerse in a 2023 round, is currently suing the company for fraud, alleging that the company violated investment terms and refused to pay the proceeds of the acquisition. In a separate lawsuit, creditors are seeking to recover $64 million from a loan Mr. Shrivastav took out shortly after the deal closed.
The complaint alleges that Shrivastav committed fraud during the acquisition itself and “used fraudulent merger documents that did not reflect the terms of the transaction agreed to by Mr. Shrivastav and Minute Media in order to induce Clippings shareholders to approve the merger.”
Even VideoVerse executives are coming forward with accusations. In a separate lawsuit, the company’s chief operating officer alleges that Shrivastav forged signatures on loan agreements and stock buyback agreements in response to deals with Minute Media, defrauding the company of tens of millions of dollars.
clipping business
Less famously, VideoVerse became a mainstay in the multibillion-dollar clipping industry, providing automated tools for editing long-form broadcasts into short clips that often flow on social platforms.
Its flagship product, Magnifi, is an AI-powered tool that can automatically identify key players and moments. Using this software, clients can easily generate a package of all the three-point shots in a basketball game, for example. Backed by an extensive human support team, the platform has attracted prominent clients such as the Indian Premier League, FIFA+, and Nippon Television.
It’s a lucrative niche, and one that Minute Media had hoped to expand into the U.S. market before VideoVerse’s internal problems surfaced.
Even in the multiple lawsuits against Shrivastav, there are contradictory claims and inconsistencies as investors struggle to understand the current state of the company. What is clear is that tens of millions of dollars are unaccounted for, and there are already disputes over where the money went and who is owed how much.
In October, Shrivastav approached investment firm Lingotto to arrange a $55 million structured loan purportedly to satisfy previous creditors. Minute Media’s merger price had already been announced as more than four times that amount, so it seemed like a safe bet. The financing was also supported by statements from creditors and Minute Media’s own CEO. According to Lingotto’s court filing, $53 million was transferred to an account controlled by Clippings on October 1, based on a standard repayment schedule.
But Lingotto now claims that the key documents provided by Shrivastav were forged. Minute Media’s CEO did not sign the documents, and screenshots purporting to show internal bank balances were also fabricated, according to the complaint.
According to the terms of the loan, Lingotto owed $4 million on March 31, but the loan was never repaid. When the investment firm inquired about the full amount of the interest-bearing loan, it discovered a long list of people waiting to be paid from VideoVerse. Another loan from Bluestone Capital, which had been settled several months earlier, was also late in payments. By the end of April, Shrivastav had stepped down as CEO.
In the months that followed, Minute Media, Lingotto, and Bluestone each sought compensation in Delaware Chancery Court, resulting in a web of overlapping court claims. A separate complaint by former COO Sabya Das alleges a more complex web of fraud involving secondary sales and secret high-interest loans.
Shrivastav did not respond to repeated attempts to contact him regarding the matter. Das’ latest address listed in his complaint is in Dubai’s Palm Jumeirah Islands.
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