Ashneer Grover Vs Bhavik Koladiya Fight Over BharatPe Stake; Board Decides Not To Intervene

Ashneer Grover Vs Bhavik Koladiya Fight Over BharatPe Stake; Board Decides Not To Intervene

SUMMARY

The company’s Board has decided not to intervene in a new controversy and stick to the internal governance review done by third-party law and risk assessment firms

Meanwhile, reports continue to float that say that the company might take further legal action, including clawing back some of Grover’s shareholding

Shashvat Nakrani and Bhavik Koladiya are the original cofounders of BharatPe, but after being convicted in a credit card fraud case in the US, Koladiya split his shareholding and took up the role of consultant

As the controversies within BharatPe escalate by the day, the fintech unicorn has been hit with another controversy surrounding the stake of founders Ashneer Grover and Bhavik Koladiya.

Interestingly, the company’s Board has decided not to intervene in a new controversy and it will stick to the internal governance review done by third-party law and risk assessment firms.

According to reports, BharatPe Board has asked Koladiya and Ashneer Grover, to sort out the stakeholding issue amongst themselves.

Having founded the company along with Shashvat Nakrani, Bhavik Koladiya should have been one of the faces of the company. But prior to launching BharatPe, in 2015, Koladiya was convicted in a credit card fraud case in the US.

His conviction and subsequent sentencing as time served in the US, barred him from holding directorships in the US. It would have also complicated matters for BharatPe in future fundraises from foreign investors. Thus, Koladiya’s 30% stake in the company was diluted in the many funding rounds for the company as more and more VCs backed the company.

He was also removed from BharatPe parent Resilient Innovation’s cap table, taking up the role of consultant at BharatPe, splitting his holding between Grover and Nakrani.

BharatPe founders Ashneer Grover and Bhavik Koladiya are fighting over their stake in the company and the Board has decided not to intervene.

After Grover was removed from the fintech firm, reports about the growing discontent between him and Koladiya surfaced. Taking potshots at Grover, Nakrani also recently claimed that Grover allegedly tried to create a false narrative about the company.

Earlier in February, Nakrani had issued a statement backing BharatPe CEO Suhail Sameer. Indicating his allegiance in the tussle, Nakrani had backed Sameer’s presence on the Board after Grover had sought the CEO’s expulsion.

The Boardroom Drama At BharatPe

The troubles for Grover began after his expletive-laden audio against a Kotak Mahindra employee became viral. This was followed by an internal audit that pointed allegations, against Grover and his wife Madhuri Jain Grover, former head of controls at the company, of embezzlement, payments to fake vendors and syphoning-off money.

Know about the key people involved in the BharatPe Vs Ashneer Grover saga.

After a saga of mudslinging, Grover resigned from the company and its board on March 1 alleging ‘shameful vilification.’ This prompted a terse reply from the company accusing Grover of “spinning lies and hurling baseless allegations and threats” against BharatPe.

In its statement, BharatPe claimed that the Grover family and their relatives engaged in extensive misappropriation of company funds and abused company expense accounts in order to enrich themselves and fund their lavish lifestyles.

Meanwhile, reports continue to float that say that the company might take further legal action, including clawing back some of Grover’s shareholding. The two warring sides refuse to back down and continue to hit out against each other.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Ashneer Grover Vs Bhavik Koladiya Fight Over BharatPe Stake; Board Decides Not To Intervene-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Ashneer Grover Vs Bhavik Koladiya Fight Over BharatPe Stake; Board Decides Not To Intervene-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Ashneer Grover Vs Bhavik Koladiya Fight Over BharatPe Stake; Board Decides Not To Intervene-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Ashneer Grover Vs Bhavik Koladiya Fight Over BharatPe Stake; Board Decides Not To Intervene-Inc42 Media
Ashneer Grover Vs Bhavik Koladiya Fight Over BharatPe Stake; Board Decides Not To Intervene-Inc42 Media
You’re in Good company