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Fintech platform BharatPe on Wednesday removed co-founder and managing director (MD) Ashneer Grover from all positions in the company. The fintech firm accused Grover’s family and relatives of engaging in extensive misappropriation of company funds.
In its statement, BharatPe said that it reserves the right to take further legal action against Grover and his family but remained silent on his resignation.
“The Board will not allow the deplorable conduct of the Grover family to tarnish BharatPe’s reputation or that of its hard-working employees and world-class technology. As a result of his misdeeds, Mr. Grover is no longer an employee, a founder, or a director of the company,” the company’s statement read.
The company further said that its board remains highly focused on supporting the growth and continued success of BharatPe and is taking all necessary steps to further strengthen the company’s corporate governance, including the appointment of an audit committee, an internal auditor, and the implementation of other key internal controls.
“The success of BharatPe is a result of the collective effort of a large team of dedicated and talented professionals, and not any one individual. We are confident that the company is marking the beginning of a new chapter in its success–one grounded in trust and integrity–and we are excited to embark upon this next leg of our journey,” the statement read.
In response to a query over the company’s allegations, Grover told The Indian Express: “I am appalled at the personal nature of the company’s statement, but not surprised. It comes from a position of personal hatred and low thinking. I think the Board needs to be reminded of $1 million of secondary shares investors bought from me in Series C, $2.5 million in Series D, and $8.5 million in Series E.
“I would also want to learn who among Amarchand, PWC and A&M has started doing audit on the ‘lavishness’ of one’s lifestyle? The only thing lavish about me is my dreams and ability to achieve them against all odds through hard work and enterprise,” he said.
The move comes a day after Grover resigned as MD and from the company’s board minutes after being notified of a board meeting scheduled to be held late Tuesday.
BharatPe said its board plans to consider the report submitted by PwC on Grover’s conduct in this meeting. Before he went on a “voluntary” leave of absence on January 19, Grover had said he would return on April 1.
In his resignation letter, Grover said he would continue as the single largest individual shareholder of the company. As of August 2021, Grover owned a 9.5 per cent stake in BharatPe, and as per the company’s last fundraise, his stake was worth Rs 1,800-1,900 crore.
He also alleged the BharatPe board had “ousted” him for their “vested interests”, adding that the recent developments related to the company seem to be a “battle of egos being played to the gallery of the media under the charade of ‘good governance’”. Grover also alleged the “investor template” to make an “unwanted” founder go away, is to make the founder “the villain of the piece”, something he claims is being done to him.
