Software-as-a-service firm Whatfix's founder and chief executive Khadim Batti on Monday wrote to employees saying litigation is a common competitive tactic in international markets.
“We believe that our success in the marketplace has led to this litigation. This legal matter does not impact our day-to-day operations or our ability to serve our customers,” Batti told employees.
The email came after ET's story on Monday on the Bengaluru and San Jose-headquartered startup being taken to court by its Israeli-origin and Nasdaq-listed rival WalkMe.
«WalkMe has a history of resorting to legal action against competitors,” Batti said in the email to employees, reviewed by ET. In 2019, WalkMe had filed and lost a patent infringement case against another rival, Pendo.
On Monday, ET had reported on how WalkMe has alleged that Whatfix, which is backed by SoftBank Vision Fund and Peak XV Partners (earlier Sequoia Capital India), gained unauthorised access to its systems, sought to interfere with its customer relationships, made misleading advertising claims about its products, and used its design mark without permission.
In its complaint, dated August 8, WalkMe charged that Whatfix had interfered with multiple WalkMe customer relationships and induced those customers to breach their subscription agreements with WalkMe.
The lawsuit added that the customers, whose names were not disclosed in the filings, provided Whatfix employees with