BharatPe Co-Founder Nakrani Says Board Acted Decisively In Removing Ashneer Grover

Grover owns a 9.5 per cent stake in BharatPe, while Nakrani owns 7.8 per cent. Sequoia Capital India is the largest shareholder with a 19.6 per cent stake, followed by Coatue and Ribbit Capital

Ashneer Grover had questioned the role of former SBI chairman Rajnish Kumar, an independent director on BharatPe board. Image Courtesy: LinkedIn/Ashneer Grover

New Delhi: Shashvat Nakrani, co-founder BharatPe, has accused Ashneer Grover, another co-founder of the fintech firm, of creating a false narrative about the company and said the board acted quickly and decisively in unseating him after PwC report, according to a report in the PTI.

Last week, the payment start-up stripped Grover of all titles and positions over his alleged 'misdeeds' and may take legal actions, including clawing back of some of his shareholding.

In a letter to employees, Nakrani said that the whole episode regarding Grover was an aberration and not the norm at BharatPe, and went on to defend the board who he said were celebrated names in the banking and financial services industry.

He wrote, “Ashneer Grover, my co-founder, is no longer associated with BharatPe as an employee, a founder or a director of the company. Ashneer sent in his resignation late night on March 1, 2022 to the board, minutes after receiving the agenda of the board meeting on the findings of the PwC report.”

The company had last week said, “the Grover family and their relatives engaged in extensive misappropriation of company funds, including, but not limited to, creating fake vendors through which they siphoned money away from the company's account and grossly abused company expense accounts in order to enrich themselves and fund their lavish lifestyles.”

In his letter, Nakrani said, "Grover had tried to create a false narrative about the company that we have built together with the right spirit. While the content of the enquiry report is confidential and as a board member, I am not at liberty to disclose its findings, I am proud of the fact that our board acted quickly and decisively to uphold good corporate governance," he said.

Currently, Grover owns a 9.5 per cent stake in BharatPe, while Nakrani owns 7.8 per cent. Investor Sequoia Capital India is the largest shareholder in BharatPe with a 19.6 per cent stake, followed by Coatue at 12.4 per cent and Ribbit Capital at 11 per cent.

Reacting to BharatPe's decision, Grover had last week stated he was appalled at the personal nature of the company's statement but not surprised. "It comes from a position of personal hatred and low thinking," he had said. "I would want to learn who among Amarchand, PwC and A&M has started doing an audit on 'lavishness' of one's lifestyle?"

Grover had also questioned the role of former SBI chairman Rajnish Kumar, an independent director on BharatPe board.

"It's time now to stop rumours and innuendoes from distracting us and go back to building," Nakrani said, adding that it is "time to do what we have done in the past and will do best. We owe this to the fine team that works here, our shareholders and this remarkable country that helps us prosper".

BharatPe, which has engaged a law firm and risk advisory consultants to conduct a more detailed investigation after allegations of financial irregularities, last month sacked Madhuri Jain, head of controls and wife of Grover, for alleged financial irregularities, including using the company funds for personal visits abroad, beauty treatments, buying electronics, and paying for helps employed at her residence.