INDIA: BharatPe, a fintech unicorn, has aggressively criticized its ex-co-founder and managing director Ashneer Grover, alleging that Grover and his family misappropriated business assets to finance their extravagant lives.
BharatPe’s statement on Ashneer Grover
According to the company, the BharatPe board authorized a thorough evaluation of the company’s internal controls in order to uphold its highest governance standards and in light of concerns received. “This comprehensive study is being guided by well-respected and unbiased external experts,” the statement continued.
The corporation has stated that it reserves the right to pursue additional legal action against him and his family.
The firm declared that Grover is no longer an employee, founder, or director of the company, without elaborating on whether BharatPe accepted Grover’s resignation.
Bharat Pe stated that the Board will not allow the Grover family’s heinous behaviour to tarnish BharatPe’s reputation or that of its hardworking employees or world-class technology. They added that Grover is no longer an employee, founder, or director of the company as a result of his actions.
“BharatPe is totally dedicated to its workers and customers and looks forward to its continued growth as an Indian fintech leader,” stated a company representative.
Grover tendered his resignation to the BharatPe board in the early hours of March 1, calling the business’s governance review a charade in which he was not given an opportunity to be heard and accusing corporate investors such as Sequoia Capital of fueling the fire against him.
In an open statement BharatPe said, “Mr. Ashneer Grover quickly abdicated responsibility by sending an email to the Board announcing his resignation and fabricating another false narrative of the events to the public minutes after getting notice that part of the inquiry’s conclusions will be delivered to the Board.”
“Mr. Grover’s spinning lies and flinging unsubstantiated claims and threats has enraged the company,” BharatPe added.
According to BharatPe, the Grover family and their relatives engaged in extensive misappropriation of company funds, including creating fake vendors through which they syphoned money away from the company’s expense account and grossly abusing company expense accounts in order to enrich themselves and fund their lavish lifestyles.
The company has been conducting a governance review and has enlisted the help of risk advisory firm Alvarez and Marsal, consultancy firm PwC, and law firm Shardul Amarchand Mangaldas and Co to investigate allegations fund embezzlement and corporate governance issues under Grover.
Earlier Grover shot a letter to the Bharat Pe board in which he wrote that he has been forced to bid adieu to BharatPe.
In response, BharatPe stated that its board is taking all necessary efforts to strengthen the firm’s corporate governance, such as establishing an audit committee, hiring an internal auditor, and implementing other essential internal controls.
“BharatPe’s success is due to the combined efforts of a huge group of dedicated and brilliant individuals, not to the efforts of a single individual.”
“We are convinced that the company is embarking on a new chapter in its success–one based on trust and integrity–and we are looking forward to the next leg of our journey,” BharatPe added.