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Acrimonious Disputes End with Settlement
Fintech giant BharatPe and its former co-founder Ashneer Grover have reached a pivotal settlement, putting an end to a long series of legal and public battles. The agreement ensures Grover will no longer be associated with the company in any capacity, nor will he hold any stake in BharatPe. The company’s spokesperson confirmed the resolution, emphasizing the mutual decision to cease all ongoing legal cases.
As per the settlement, a portion of Grover’s shares will be transferred to the Resilient Growth Trust for the company’s benefit, while the remainder will be managed by his family trust. This arrangement ensures his complete dissociation from BharatPe’s shareholding and governance.
Share Transfer to BharatPe Board and Family Trust
A source familiar with the matter revealed that Grover will transfer 1.4% of his holding to BharatPe’s board, with the remaining 3.5-3.7% being allocated to his family trust. This move effectively removes him from the company’s cap table, formally marking his exit from BharatPe’s operations.
In addition to this, Grover will return shares to BharatPe’s co-founder Bhavik Koladiya. The dispute between Grover and Koladiya stemmed from an allegation that Grover had acquired 1,611 shares (now 16,110) worth ₹88 lakh from Koladiya without making payment. The case went to court, resulting in Grover being barred from selling these shares until a resolution was reached.
BharatPe Focuses on Growth
Following the settlement, BharatPe issued a statement wishing Grover well, stating, “BharatPe continues to focus on delivering industry-leading solutions to its merchants and customers, driving growth with profitability.” The company, under the leadership of CEO Nalin Negi, is gearing up for an upcoming IPO, backed by prominent investors like Ribbit Capital, Coatue, Insight Partners, and Peak XV Partners.
Grover also responded publicly, tweeting on X: “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 will no longer be associated with BharatPe in any capacity, nor be part of the capital table. My Family Trust will manage my remaining shares. Both parties have decided not to pursue the cases filed. I hope BharatPe continues to grow and succeed for the benefit of all its stakeholders.”
Legal Troubles Surrounding Grover’s Family
The settlement is critical for Grover, as his family faces legal challenges. Days prior, Deepak Gupta, a family member and brother-in-law to Grover, was arrested by the Economic Offences Wing (EOW) of Delhi Police. Gupta was implicated in a case concerning the alleged misappropriation of BharatPe’s funds, leading to his arrest on September 19, 2024.
Gupta’s arrest was linked to a broader investigation into financial misconduct involving Grover and his family. BharatPe filed a criminal complaint in December 2022 against five individuals, including Grover, his wife Madhuri Jain, and several family members. They were accused of causing the company losses of ₹81.3 crore through fraudulent activities like sham payments, fake HR consultants, and fraudulent input-tax credit transactions.
Grover’s Next Venture in Fintech
Despite these setbacks, Grover is moving forward with his second venture in the fintech industry. His latest startup, Third Unicorn, launched CrickPe, a fantasy gaming platform, in 2023. He is now preparing to introduce a new app, ZeroPe, which aims to provide medical loans, signaling his continued commitment to the fintech space.
IPO-Bound BharatPe
As BharatPe moves forward, it is focusing on its future prospects, with plans to tap into public markets. The company has already named Nalin Negi as CEO, who has been serving in the position since January 2023. BharatPe is now well-positioned to strengthen its leadership and drive profitable growth, backed by its extensive investor network and innovative financial solutions.
The settlement between BharatPe and Grover marks a new chapter for both parties, with BharatPe focusing on its IPO aspirations and Grover ready to embark on fresh ventures.
