A $250 million acquisition that once looked like a milestone for India’s startup scene has collapsed into a pile of fraud allegations, forged signatures, and missing money. According to TechCrunch AI, VideoVerse, the Indian company behind AI clipping tool Magnifi, was supposed to be acquired by sports publisher Minute Media in September 2025. Less than a year later, the deal is in pieces, founder Vinayak Shrivastav is at the center of multiple lawsuits, and investors still haven’t seen their share of the payout.
What stands out here is how far this goes beyond a deal that simply didn’t close. TechCrunch AI reports that across a stack of legal filings, creditors and investors describe a CEO who allegedly used the appearance of a successful business to pile up cash and side deals until the story stopped holding together.
What VideoVerse actually did
VideoVerse wasn’t a household name, but it played in a real market. Its flagship product, Magnifi, is an AI tool that automatically spots key players and moments in long broadcasts and cuts them into short, social-ready clips. Think every three-point shot in a basketball game, packaged in seconds.
That pulled in serious clients: the Indian Premier League, FIFA+, and Nippon TV. Minute Media, split between New York and Tel Aviv, wanted to take that clipping tech into the lucrative U.S. sports market. Then the internal problems surfaced.
How the deal unraveled
Here’s what TechCrunch AI lays out. In May, Minute Media said it was terminating its contract with VideoVerse, noting the two had kept operating as separate legal entities even after the acquisition supposedly closed. A Minute Media representative said that “after, among other things, significant discrepancies were discovered in VideoVerse’s representations, Minute Media decided to terminate its engagement with the company.”
The lawsuits stack up fast:
- Bluestone Capital, a 2023 backer, is suing VideoVerse for fraud, alleging the startup broke its investment terms and refused to pay out acquisition proceeds.
- A separate creditor is trying to recover $64 million from a loan Shrivastav took out right after the deal closed, claiming he “used fraudulent merger documents” to get shareholders to approve the merger.
- VideoVerse’s own COO, Sabya Das, alleges Shrivastav forged his signature on loan and share-repurchase agreements, pulling tens of millions out of the company.
Then there’s Lingotto. TechCrunch AI reports the investment firm arranged a $55 million structured loan in October, and $53 million landed in a Clippings-controlled account on October 1. Lingotto now says the documents Shrivastav provided were forged. Minute Media’s CEO never signed them, the suit alleges, and screenshots of internal bank balances were fabricated. A $4 million payment due March 31 never came.
By the end of April, Shrivastav was out as CEO. Minute Media, Lingotto, and Bluestone are all now seeking restitution in Delaware Chancery Court. Shrivastav didn’t respond to TechCrunch AI’s attempts to reach him. His most recent listed address is on the Palm Jumeirah in Dubai.
Why this matters
This is significant because it exposes how much startup dealmaking still runs on trust rather than verification. Sophisticated investors, a real acquirer, and a well-known product roster didn’t stop allegedly forged documents from moving tens of millions of dollars. Due diligence has limits, and this is a loud reminder of where they sit.
For founders, operators, and anyone writing checks in AI, the takeaway is practical: verify signatures and bank statements independently, confirm merger terms directly with the counterparty, and don’t let a splashy headline valuation stand in for actual proof. A public $250 million deal made a $55 million loan feel safe. It wasn’t.
The cases are still tangled, with conflicting claims about where the money went. Expect the Delaware filings to keep landing. You can find the full breakdown at the original source.