Published By: Sayan Paul

BharatPe Settles Legal Dispute With Ashneer Grover: What Lies Ahead For Both Sides?

After a two-year-long legal dispute, BharatPe has finally reached a settlement with former co-founder Ashneer Grover.

Fintech giant BharatPe and its former co-founder Ashneer Grover have finally reached a decisive settlement, with both sides agreeing to drop all the pending cases against each other. As part of this, Grover "will no longer be associated with BharatPe in any capacity, nor be part of the capital table.” Also, certain shares held by Grover will be transferred to the Resilient Growth Trust, while his remaining ones will be managed by his family trust.

Grover, who had been the co-founder and managing director of BharatPe, resigned from his position in February 2022. The New Delhi-based company accused Grover and his family of "misappropriation of funds", causing losses of Rs 81.3 crores. The accusations (under a criminal complaint filed in December 2022) also included fraudulent payments to fictitious HR consultants, inflated vendor payments, and fabricated invoices among others. Moreover, the boards terminated the services of Madhuri Jain (Grover's wife), head of controls. The scene became even worse when Deepak Gupta, Grover’s brother-in-law, was arrested by Delhi Police in connection with the case. On the other hand, Grover wrote to the National Payments Corporation of India (NPCI) in February 2023, accusing BharatPe’s co-founder Bhavik Koladiya of data theft.

More About The Settlement, And Both Sides' Statements

Ashneer Grover said that he will continue to remain aligned with the company's growth and success, although he will no longer be associated with it directly. In his words, "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 the cases filed. I hope BharatPe continues to grow and succeed for the benefit of all its stakeholders.”

(Credit: Ashneer Grover)

BharatPe, on the other hand, said in a statement, "Both parties have decided not to pursue the cases filed. We wish Grover well. BharatPe continues to focus on delivering industry-leading solutions to its merchants and customers driving growth with profitability."

(Credit: BharatPe)

Notably, in January last year, BharatPe co-founder Bhavik Koladiya alleged that he had transferred 1,611 shares of BharatPe (now 16,110 shares, worth Rs 88 Lakh) to Grover, however, never got paid for these. Reports suggest that Grover has agreed to return these shares to Koladiya.

What Lies Ahead For Both Sides?

As already mentioned, this settlement marks the end of a long legal battle as well as a public dispute for both sides. And what lies ahead for both seems promising. 

BharatPe is preparing to launch its IPO, and experts believe that this settlement with Grover will help them focus more on their growth journey. According to reports, the fintech giant is now all set to stabilize its system, reduce non-performing assets, and cut costs on marketing. Also, it's aiming to expand its footprint in the digital payments’ ecosystem, competing with leading companies like PhonePe, Google Pay, and PayTM.

After exiting BharatPe, Grover founded Third Unicorn Pvt Ltd, and launched a cricket fantasy gaming platform ‘Crickpe’. Speaking about this venture, he said, "We at Third Unicorn have quietly and peacefully built a business that is shaking the market. Bootstrapped. Without limelight. And we are doing things differently. Very differently."

On the other hand, Grover is now preparing his second inning in the fintech world with his app for medical loans, ZeroPe. Developed by Third Unicorn, ZeroPe is currently in its testing phase and is in collaboration with Delhi-based Non-Banking Financial Company (NBFC) Mukut Finvest. It will reportedly provide instant pre-approved medical loans of up to Rs 500,000.