Policy · Enterprise Software & IT

Petpooja under tax scrutiny for alleged role in restaurant sales manipulation

By Startup Enthusiast · 25 April 2026

What they do

Petpooja provides SaaS-based POS solutions for restaurants, operating in India, the Middle East, the US, and Africa

Tax officials are investigating allegations that the company's software enabled restaurants to delete or edit sales data to evade taxes

In Punjab alone, officials estimate ₹5,000 Cr in sales was scrubbed from digital ledgers, with more cases expected as the probe widens

Petpooja, a SaaS-based POS provider for restaurants, is under investigation by GST and income tax officials for allegedly enabling restaurants to manipulate sales data.
Tax officials have raided nearly 100 restaurants across 45 cities since the end of last year, uncovering a pattern of concealed sales.
In Punjab alone, officials estimate that over ₹5,000 Cr in sales was scrubbed from digital ledgers, with more cases expected as the probe widens.
Restaurants allegedly deleted or edited entries in Petpooja's system to conceal cash transactions and evade taxes.
The software allegedly allowed bulk deletion of bills within a selected date range, a feature that tax officials say was exploited.
Petpooja claims it is an infrastructure provider, not a tax compliance tool, and that the ability to edit entries is a standard industry feature.
The company says it maintains comprehensive audit logs and will cooperate with authorities within the scope of due process.
Tax officials have confiscated 60 TB of data from Petpooja's offices to trace deleted or altered records.

The investigation began with a probe into popular biryani chains in Hyderabad and expanded nationwide.
Restaurants used Petpooja's software to delete or edit bills, primarily cash transactions, to underreport sales and evade taxes.
The practice was especially prevalent in establishments serving alcohol, where tax rates vary significantly.
Petpooja's software allegedly allowed underbilling, reducing sales amounts without disturbing bill numbers.
Tax officials are examining discrepancies between transactions processed via Petpooja and income tax filings.

Petpooja provides SaaS-based POS solutions for restaurants, including order management, invoice automation, and payroll services.
The company serves over 1 Lakh restaurants across India, the Middle East, the US, and Africa.
Its flagship product, Petpooja POS, manages end-to-end restaurant operations.
The startup reported a revenue of ₹101 Cr in FY25, while its loss increased to ₹21.4 Cr.
Petpooja offers a suite of products, including Petpooja Purchase, Petpooja Tasks, Petpooja Invoices, and Petpooja Payroll.

Product: restaurant tech firm
Customers: Restaurant owners seeking integrated management and operations software
How it makes money: Cloud-based SaaS platform offering order management, payroll, invoicing and AI automation
What sets it apart: Powers 1 lakh restaurants across 140 cities with daily order processing at scale