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About Bharatpe

Ashneer Grover became a house hold name after the show Shark Tank India’s success. Bharatpe was founded by Ashneer Grover, Bhavik Koladiya, and Shaswat Nakrani in 2018 as a Fintech platform catering to SME merchants. The three founders have been alumni of Indian Institute of Technology, Delhi. The current CEO is Sohail Sameer.

The Controversy         

There was news of a rough patch between the Board and Grover which led to his resignation on 28^th February 2022 from the position of Managing Director and Board member. The controversy started when Bharatpe asked Grover to take a voluntary absence for two months in January 2022. Grover, his wife, and five others were allegedly accused of a financial fraud. As per reports, the financial fraud was in double digit crores and it was not appropriate for Grover to return to his position. The financial fraud is alleged to be misappropriation of funds wherein fake vendor accounts were created to divert funds for Mr and Mrs Grover’s lavish lifestyles. Grover tried to maintain his stake of 9.5% in the company with the legal aid of Karanjawala & Co. He asked the investors to buy him out i.e pay him a fair market value of 9.5 % stake in the company. He filed an arbitration plea in the Singapore International Arbitrary Centre (SIAC). The things didn’t turn out the way Grover wanted. Bharatpe in their official statement after Grover’s resignation said that he was stripped from the position of an employee, a founder and a director of the company

After the Controversy

The resignation letter was nothing short of accusations towards the management. The management got back with fresh accusations against the ex-founder and his wife. Management differences should always be dealt with in the Board room. When the worms come out of the can there is no going back. There was brief news that amid this management tensions, numerous employees have resigned as they were not sure of the company’s future. The upper-level management tensions affect everyone in the company hierarchy. A startup has a culture that is maintained by the founders. When the culture is gone it is like any other company making money. With one founder member gone Bharatpe may lose its culture. The management loses focus on growth and product development. However, as per reports, the company has performed well in Q4 (January – March) and is eyeing an IPO in 18-24 months.