Fintech

BharatPe Reaches Settlement with Ashneer Grover, Former Co-founder No Longer Associated with Firm

• ByStartupStory     |    September 30, 2024

Fintech company BharatPe announced on Monday that it has reached a settlement with its former co-founder Ashneer Grover, officially ending their association. The legal tussle that started in 2022 has now come to a close, with Grover no longer holding any role in the company.

In an official statement, BharatPe said, “As part of the settlement, Mr. Grover will not be associated with BharatPe in any capacity nor be a part of the shareholding of the company. Certain shares of Mr. Grover shall be transferred to the Resilient Growth Trust for the benefit of the Company and his remaining shares will be managed by his family trust.”

Both parties have agreed to drop the ongoing legal cases. “Both parties have decided not to pursue the cases filed. We wish Mr. Grover well. BharatPe continues to focus on delivering industry-leading solutions to its merchants and customers, driving growth with profitability,” BharatPe added.

BharatPe announces settlement with ex Co-Founder pic.twitter.com/TJnFAX8vj0

— BharatPe (@bharatpeindia) September 30, 2024

This development marks the end of a highly publicized conflict that arose between BharatPe and its former co-founder. Grover, alongside some of his family members, was accused of siphoning off funds through fraudulent schemes between 2019 and 2021. The company alleged that Grover and his family were responsible for losses amounting to Rs 81.3 crore. Specific charges included payments to fake HR consultants, inflated vendor costs, illegal transactions, and destruction of evidence.

In December 2022, BharatPe filed a criminal complaint seeking over Rs 88.67 crore in damages from five individuals, including Ashneer Grover, his wife Madhuri Jain Grover, her brother Shwetank Jain, father Suresh Jain, and Deepak Gupta. The fallout also saw Madhuri Grover, who was the former Head of Controls at BharatPe, being fired.

Most recently, in September, the Economic Offences Wing (EOW) of Delhi Police arrested Deepak Gupta, the former Head of Procurement at Resilient Innovation, BharatPe’s parent company, and Grover’s brother-in-law. It remains uncertain whether the EOW’s investigation will cease following the settlement.

Following the announcement of the settlement, Grover took to X (formerly Twitter) to share his thoughts. “I have reached a decisive settlement with BharatPe. I repose my faith in the management and board, who are doing great work in taking BharatPe forward in the right direction. I continue to remain aligned with the company’s growth and success. I will no longer be associated with BharatPe in any capacity, nor be part of the capital table. My remaining shares will be managed by my Family Trust. Both parties have decided not to pursue cases filed. I hope BharatPe continues to grow and succeed for the benefit of all its stakeholders,” he stated.

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