Ashneer Grover Resigns as MD and Director of BharatPe, Know the Reason

Ashneer Grover resigned as MD and Director of BharatPe on Tuesday, March 1. Grover's resignation came days after his spouse Madhuri Jain Grover's services as head of controls was terminated on suspicions of theft of money, embroiled in a boardroom struggle.

Ashneer resigned from the board in a scathing resignation letter, Stated "I write this with a sad heart since I am being forced to leave a firm in which I am a co-founder. With my head held high, I declare that our firm is now a leader in the world of fintech. Unfortunately, since the beginning of 2022, I've been immersed in false and targeted assaults on me and my family by a few individuals who are willing to hurt not just me and my reputation, but also the reputation of the firm, which they are attempting to safeguard."

Why did Ashneer Grover Quit the BharatPe Board of Directors?

BharatPe was the latest entrant in the UPI arena, competing with powerhouses like PayTM, PhonePe, and GooglePay and yet emerging as the industry leader.

Grover said in his letter of resignation that the company's board "ousted" him because of their "vested interests." He claimed that recent corporate developments appear to be a "war of egos being performed to the gallery of the press under the guise of 'good governance.'" Grover further said that the "investor pattern" for getting rid of an "unwanted" founder is to create the founder "the villain of the piece," which he alleges is being done to him.

He said that the board members' perspectives on business and problems on the ground had been "colored by the windows of the Ivory Tower in that you all dwell."

Ashneer Adds in his Letter of Resignation

Grover went on to say in his resignation letter, "From being hailed as the face of Indian entrepreneurship and encouragement to Indian youth to start their enterprises, I am now squandering my time fighting a lengthy, lonely war against my investors and management. Unfortunately, the management has lost sight of what is truly at risk – BharatPe."

Ashneer Found Abusing and Threatening to Kotak Group Employee in a Leaked Audio Clip

Grover, who took a two-month leave of absence in January after being accused of using abusive language against Kotak Mahindra Bank employees and engaging in fraudulent practices, had filed an arbitration petition with the Singapore International Arbitration Centre (SIAC) asserting the company's investigation on him was illegal.

Grover's resignation occurred in the wake of a leaked audio clip in which he is heard cursing and threatening a Kotak Group employee for losing out again on share allotment as during the IPO of FSN E-Commerce Ventures, which owns Nykaa.

Grover said the viral audio recording was a hoax and extortion attempt. He eventually erased the message, though. He served Kotak with a legal notice for failing to provide funds for the Nykaa IPO. The notification was delivered on October 30, 2021, but only became public when the audio clip was released.

Will Ashneer Grover keep his Stock in the Company?

Grover is alleged to have stated in his resignation letter that he would remain the company's single largest individual shareholder. Grover owns 9.5 percent of BharatPe, and his investment was valued at Rs 1,800-Rs 1,900 crores in the company's most recent financing.