The warehousing startup Wherehouse is shutting down after a dispute with a client allegedly led to the arrest of its co-founder, Vaibhav Chawla, and the detention of several employees. Chawla announced the closure on LinkedIn, citing a "frivolous complaint" and subsequent police action as the final straw.
Wherehouse, founded in 2021, aimed to provide supply chain intelligence, helping brands improve delivery speeds and drive business growth. Chawla's LinkedIn post detailed the company's journey, highlighting their success in navigating capital constraints, operational challenges, and the complexities of building consumer infrastructure. He emphasized the company's profitability in the past year and the dedication of his team. However, recent events have made the situation "not worth fighting for".
The conflict began in July 2024 with Curio Lifestyle, a client seeking expansion support in the Delhi NCR region. A formal agreement was signed in August 2024, which included terms for monthly service fees and staff salary reimbursement. Wherehouse claims to have exceeded the agreement by stocking products in 75 stores, triple the original scope. By November 2024, Curio Lifestyle allegedly began defaulting on payments, leading to unpaid dues. Wherehouse states that by May 2025, the outstanding balance reached ₹1.92 lakh, while Curio Lifestyle acknowledged holding ₹46 lakh worth of stock.
In June 2025, the situation escalated when the client claimed that Wherehouse owed them money, a claim Chawla refuted based on the contract terms. Following "abusive and threatening behavior," Wherehouse terminated the agreement. Instead of settling the dues, the client filed a complaint with the Economic Offences Wing (EOW). Wherehouse submitted a defense, arguing that the complaint was an attempt to avoid payment.
Chawla alleges that police from Nangloi Extension Police Station contacted him in November without providing details of the complaint. According to Chawla, officers visited Wherehouse premises multiple times between November 17 and 28, disrupting work and pressuring him to visit the station without a lawyer. On November 28, police allegedly threatened staff and detained ten warehouse workers, who were later released after their families intervened.
Chawla was arrested around 1:00 am on December 2. Delhi Police sources, however, have dismissed claims of detention, stating that no one is in custody and that they are investigating a complaint of cheating.
Chawla's LinkedIn post expressed his disappointment and the difficult decision to shut down Wherehouse. He stated that the company's priority was protecting its employees and that he could not continue the business under the circumstances. He wrote, “Wherehouse means nothing if we can't protect the very people who built it". He also mentioned reaching out to various contacts for help but ultimately concluding that they had "lost the battle". He indicated that the company would transition brands and teams in the coming months.
