Fintech unicorn BharatPe and its co-founder Ashneer Grover have reached a settlement, ending a protracted legal battle and bitter public disputes between the two parties, according to a statement released by the fintech firm according to Livemint. Under the agreement, Grover will no longer be associated with BharatPe in any capacity, and all legal suits against him are being dropped.
BharatPe and Ashneer Grover Reach Comprehensive Legal Settlement
As part of the settlement, Grover will also divest from the shareholding of the Delhi-based company. A person with direct knowledge of the development told Mint that out of the 8.5% stake previously held by Ashneer Grover and his family, approximately 4% has been returned to the company. The remaining 4% to 4.5% stake will now be housed under the Grover family trust. Grover and his family will retain all rights as common shareholders, while the board holds a right of first refusal (ROFR) should they decide to monetize their stake in the future. A right of first refusal clause in a shareholders’ agreement gives existing shareholders the initial opportunity to purchase shares before they can be offered to an outside buyer.
Confirming the terms on social media, Grover stated on the platform X that he would no longer be associated with BharatPe in any capacity, nor remain part of the capital table, adding that his remaining shares would be managed by his Family Trust and that both parties had decided not to pursue the filed cases. Additionally, cases filed by the company and its investors against Grover and his family with the Economic Offences Wing (EOW) will be dropped.
Background of the Dispute and Allegations
The settlement concludes years of high-profile disputes between the fintech firm and its former managing director. Grover resigned from his position on February 28, 2022, following a tumultuous period that included the dismissal of his wife, Madhuri Jain Grover, over alleged financial irregularities and the cancellation of her stock options reported by Business Tantra.
BharatPe’s parent company, Resilient Innovations, had previously alleged discrepancies in vendor invoices and claimed that HR consultancies linked to the company were established to siphon funds. The Economic Offences Wing of the Delhi Police pursued an investigation into claims that Grover and his family utilized backdated invoices to misappropriate funds according to NewsChacha. Grover consistently denied the allegations, defending the matter as a witch-hunt
by the BharatPe board and management to remove him.
The acrimonious fallout also featured other disputes, including a letter written by Grover in February of the previous year to the National Payments Corporation of India (NPCI) accusing co-founder Bhavik Koladiya of data theft. Furthermore, a lookout circular (LoC) had been issued against Grover and Madhuri Jain, preventing them from traveling abroad after they were stopped at Delhi’s Indira Gandhi International Airport while attempting to fly to New York.
Future Outlook and Public Market Listing Plans
Following the resolution of the protracted legal conflict, BharatPe offered well wishes to its former co-founder. The company has experienced significant financial growth, expanding its revenue more than fivefold since its last funding round in August 2021, reaching $260 million as of March 31, 2024. BharatPe was previously valued at $2.7 billion in August 2021.
According to the source with direct knowledge of the matter, removing the legal roadblocks clears the path for the company to evaluate a potential public market listing over the next 24 months. The source noted that the firm does not require primary capital at this stage.