Ashneer Grover, the embattled co-founder of economic know-how (fintech) unicorn BharatPe, resigned as managing director (MD) and firm’s board director on Monday. The corporate later stated Grover’s resignation letter was obtained inside minutes after a board assembly was known as to deliberate on an audit report by accounting agency PwC.
“Grover resigned as MD and board director of BharatPe, minutes after receiving the agenda for the upcoming board meeting that included submission of the PwC report regarding his conduct and considering the actions based on it. The board reserves the right to take action, based on the report’s findings,” the corporate stated.
A supply near the event stated Grover at the moment has 9.5 per cent shareholding within the firm. Nevertheless, the board assembly, which began late Tuesday night (as some administrators are within the US), is predicted to debate the PwC forensic audit report, take into account his resignation letter, and may additionally contact upon the potential for clawing again his shares in accordance with the articles of affiliation and shareholding settlement. Nevertheless, the total evaluate on governance and threat administration continues to be ongoing. The board assembly, nevertheless, had not ended until the time of going to press.
“The agenda of the meeting was sent at 11.56 pm on Monday. What was the urgency to send the agenda at midnight? I have written my resignation over two days,” Grover informed Enterprise Normal.
“They can’t do anything with the shares since the shareholder agreement (SHA) does not allow them at all (to claw back shares),” he added.
Grover’s resignation has come days after a plea filed by him with the Singapore Worldwide Arbitration Centre was dismissed. In his petition, the BharatPe co-founder had sought indemnity from the audit report and requested to render it invalid because it didn’t adjust to the SHA.
Final month, BharatPe had appointed threat advisory agency Alvarez & Marsal and Large 4 accounting agency PwC to probe alleged monetary irregularities on Grover and his spouse Madhuri Jain’s watch. Jain, who was head of controls at BharatPe, was fired by the fintech unicorn final week.
In his resignation letter to the board, Grover has hit out at buyers and board members of the corporate for allegedly vilifying his household and him.
Shedding gentle on his fraught relationship with the corporate’s buyers, he wrote: “You treat us founders as slaves — pushing us to build multi-billion-dollar businesses and cutting us down at will. Investor-founder relations in India is one of master-slave. I am the rebel slave who must be hung by the tree, so none of the other slaves can dare to be like me ever again.”
“None of you, including the ones based in India, have ever been to our office even once since the pandemic turned our lives upside down and sought to suffocate the economy. Not even once. Not Micky. Not Harshjit. Not Mohit. Not Teru San. Not Rahul. Not Deven. No one. None of you even turned-up despite an invitation for the inauguration of our new office,” he added.
Grover was referring to Meyer ‘Micky’ Malka of Ribbit Capital, Harshjit Sethi of Sequoia Capital, Teruhide Sato of Beenext, Rahul Vijay Kishore of Coatue Administration, and Deven Parekh of Perception Companions.
Ribbit Capital owns 11 per cent of shareholding within the firm, Beenext holds 9.6 per cent, Sequoia Capital 19.6 per cent, and Coatue Administration 12.4 per cent, based on the information from Tracxn. Perception Companions holds round 10 per cent of the corporate, based on media stories.