Indian Fintech startup BharatPe has recently released an official statement saying the company has settled a long-standing legal dispute with its former cofounder, Ashneer Grover. The resolution comes after a mutual agreement between the two parties, where Grover will no longer be associated with the company in any capacity, including shareholding.
The details
According to a company spokesperson, BharatPe and Ashneer Grover have agreed that Grover will cease to be a shareholder in the company. As part of the settlement, a portion of Grover's shares will be transferred to the Resilient Growth Trust for the benefit of the company, while the remaining shares will be managed by his family trust. Both parties have also agreed not to pursue any further legal actions regarding the dispute.
Grover transfers shares
It has been reported that Grover will transfer 1.4% of his holding to the BharatPe board, with the remaining 3.5-3.7% going to a family trust. This move effectively keeps Grover off the company's cap table, ensuring that he no longer holds any direct ownership in BharatPe. Additionally, Grover has agreed to return shares to BharatPe co-founder Bhavik Koladiya, resolving a previous dispute over share ownership.
What led to the sudden development?
The resolution of the legal dispute between BharatPe and Ashneer Grover comes shortly after a family member of Grover, Deepak Gupta, was arrested by the Economic Offences Wing (EOW) of the Delhi Police. The arrest was related to an alleged misappropriation of funds from BharatPe. Incidentally, Gupta is the husband of Madhuri Grover's sister. Madhuri is the wife of Ashneer Grover who was earlier fired by BharatPe from her position as Head of Controls. Gupta was detained following a criminal complaint filed by BharatPe against multiple individuals.
The allegations
BharatPe has accused Grover and his family of causing significant financial losses to the company through various fraudulent activities. These include illegitimate payments to fake human-resource consultants, inflated payments through connected vendors, sham transactions related to GST, unauthorized payments, and destruction of evidence. The total amount of damages is estimated to be around Rs 81.3 crore, as per the company’s claims.
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Grover's next moves
Grover rose to fame after his appearance on the Indian version of Shark Tank. Despite the legal troubles at BharatPe, Ashneer Grover has been actively involved in launching new ventures in the fintech space. His latest projects include an app for medical loans called ZeroPe and a fantasy gaming platform named CrickPe. He is now seen diversifying his interests and exploring new opportunities in the industry.
Leadership changes at BharatPe
In light of recent events, BharatPe has appointed Nalin Negi as its new chief executive officer (CEO). Negi, who previously served as the company's CFO, took over as the interim CEO in early 2023 following the departure of Suhail Sameer.
Currently, BharatPe is readying itself for a potential public listing and is focusing on strengthening its leadership team to drive future growth and success.
Grover has informed about the new agreement with his former company on social media.
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