An Indian Fintech Founder Wants To Remove The CEO Of BharatPe From The Board

An Indian fintech founder wants to remove the CEO of BharatPe from the board

Ashneer Grover, the co-founder and managing director of BharatPe, has asked the board of directors to fire CEO Suhail Sameer. This is the latest in a string of spectacular events at the Indian financial startup, which was funded by Tiger Global.

Grover, who is being investigated for possible fraud, asked that Sameer be removed from the board in a letter to board members on Wednesday, but he didn't give a reason.

"I hereby withdraw, in exercise of the authority conferred on me by Clause 3.7 of the SHA and Clause 91.7 of the AoA, my nomination of Suhail Sameer to the Board of Directors of the Company."

That's why I want the Board of Directors to do what they need to do to record Suhail Sameer's resignation as a Director of the Company. TechCrunch looked at the letter's contents.

BharatPe didn't answer right away when someone asked for comment.

A newspaper in India, the Economic Times, was the first one to report on the letter. Earlier this week, a separate report said that Grover was hiring a lawyer to protect his stake in the company and his position inside it.

Grover, 39, said last month that he would be taking a two-month leave of absence because an alleged audio clip of a man making abusive and life-threatening statements to a Kotak Bank representative about not being able to get financing to buy shares in fashion e-commerce site Nykaa's IPO surfaced on Twitter.

As a result of the tape, the board of BharatPe started an investigation into Grover and his wife, who serves as the startup's head of controls. Grover and his wife are accused of financial irregularities, among other things.

Grover laughed at the audio sample in a tweet that he later took down, but it was still there.

A preliminary investigation by Alvarez and Marsal (A&M) was done by BharatPe's board, and it found that the company paid money to vendors who didn't exist and made mistakes in the invoices it used to show how much money it spent. "Egregious cases of deception": Mint, an Indian newspaper, added more information about the company on Friday.

Board members got a letter from Grover on Wednesday, which made things even worse between Grover and Sameer, who took over as CEO last year. Mint also said that the board of directors has decided to fire Grover.

Grover and Sameer's relationship has gotten worse in the last few months. Sources say that the two had been at odds for a long time. Grover said at the time of Suhail Sameer's appointment that he was "thrilled" to have him as CEO because of his great business success and his ability to lead from the front.

Grover said this week that the investors of the company "forced" him to take a leave and that Sameer was the "board's puppet."

"Anyone who says things that aren't true about me will lose their home, car, and everything they've ever built." That I make very clear. "Be aware of the consequences if you say something that isn't true," he told the magazine.

A company called BharatPe, which is worth $2.85 billion and recently tried to raise money at a value of $4.5 billion, is one of India's fastest-growing fintech businesses. The company helps brick-and-mortar stores accept digital payments and get money for business.