Fintech company BharatPe has successfully resolved its legal dispute with co-founder Ashneer Grover, bringing an end to a contentious battle that lasted over two years. This settlement marks a significant moment in the Indian startup landscape, raising questions about corporate governance in well-funded companies.
In a statement released on Monday, BharatPe announced that Grover will no longer have any association with the company and will cease to be a shareholder. Both parties have agreed to drop any ongoing legal cases, with BharatPe wishing Grover well in his future endeavors. The company is now focused on providing industry-leading solutions to its merchants and customers while driving growth and profitability.
The settlement comes amid increasing scrutiny from authorities, following the recent arrest of Deepak Gupta, Grover’s relative, on charges of embezzlement. Since 2022, BharatPe and Grover have been embroiled in allegations of fund misappropriation involving Grover and his wife, Madhuri Jain, leading to multiple legal actions against them.
As part of the settlement, Grover’s approximately 8.4% stake in BharatPe will be reallocated, with about 3% going to co-founder Bhavik Koladiya and another 2-2.5% transferred to the Resilient Growth Trust for the company’s benefit. The remaining shares will be moved to Grover’s family trust. Grover joined BharatPe in 2018, serving as CEO, and will now hold no stake in the company.
Shashvat Nakrani, the third co-founder, has distanced himself from the controversy and currently serves as the chief operating officer. BharatPe has raised a total of $604 million from major investors, including Peak XV Partners, Coatue, and Ribbit Capital, and was last valued at approximately $2.7 billion in 2021.
With the legal matters now settled, BharatPe aims to resume its funding discussions. The company has been seeking a $100 million equity funding round, which was delayed. It has, however, recently secured $110 million through two rounds of debt financing and appointed Nalin Negi as its full-time CEO.
As BharatPe expands its consumer payments business and sees strong revenue growth in merchant payments and credit operations, the need for additional funding remains crucial. The company is reportedly disbursing around Rs 450 crore monthly, emphasizing the importance of capitalizing on its revenue-generating opportunities while managing risks in unsecured merchant lending.
BharatPe is also the promoter of Trillion Loans, a non-banking finance company regulated by the RBI, and is a joint investor in Unity Small Finance Bank, which is affiliated with the Centrum Group.
