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e-Commerce

Indonesian Commerce Startup Sues Ex-Employee for Competing

Archy Ehan
Last updated: February 12, 2024 1:45 pm
Archy Ehan
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2 Min Read
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  • Evermos sues ex-manager for violating non-compete, starting rival Orderfaz after departure.
  • Alleges new venture infringes services for small biz, demands $7.5M plus court order barring operations until 2025.
  • Rapid competitor emergence triggers accusations of IP theft amid SEA talent wars.

Contents
Violation of non-competeEvermos demands $7.5M!Orderfaz’s Rapid Rise Sparks Legal Warning

Violation of non-compete

After social commerce provider Evermos sued a former executive for founding a direct competitor allegedly violating his employment contract, a messy startup breakup is unfolding in Indonesia’s bustling commerce sector.

Evermos alleges ex-manager Reynaldi Gandawidjaja breached a 2-year non-compete clause by swiftly launching Orderfaz months after departing, along with two other Evermos alums.

Evermos demands $7.5M!

The young firm specifically charges that Orderfaz infringes on Evermos’ shipping and e-commerce funnel services catering to small businesses. Evermos now demands Gandawidjaja pay $7.5 million in fines.

It also wants a court order forcibly sidelining Gandawidjaja from running any competing companies, poaching its staff and customers until 2025.

The ugly legal feud underscores the fierce competition in Indonesian consumer startups targeting digitalizing mom-and-pop shops and merchants.

Orderfaz’s Rapid Rise Sparks Legal Warning

Talent wars are common, but the speed of Orderfaz’s founding and funding after Gandawidjaja’s exit from market leader Evermos triggered accusations of illicit advantages.

As venture capital floods Southeast Asia, such disputes may become more prominent amid limited experienced founders and loose IP protections.

The bitter litigation is a warning against overly aggressive spinoffs looking to unseat former employers.

TAGGED:div5

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