BharatPe | Business Upturn

BharatPe announces settlement with former co-founder Ashneer Grover

Aditya Bhagchandani — Mon, 30 Sep 2024 02:53:59 +0000

BharatPe has announced reaching a definitive settlement agreement with its former co-founder Ashneer Grover. As part of this settlement, Mr. Grover will no longer be associated with the company in any capacity, including shareholding. A portion of Grover’s shares will be transferred to the Resilient Growth Trust for the benefit of BharatPe, while the remaining shares will be managed by his family trust.

Both BharatPe and Ashneer Grover have decided to withdraw the legal cases filed against each other, concluding their disputes. In its official statement, BharatPe conveyed good wishes to Mr. Grover and reaffirmed its commitment to delivering industry-leading solutions to merchants and customers, focusing on growth and profitability.

“We wish Mr. Grover well. BharatPe continues to focus on delivering industry-leading solutions to its merchants and customers driving growth with profitability,” the statement concluded.

BharatPe onboards ONDC to enable food delivery via its app

Markets Desk — Mon, 23 Sep 2024 11:26:39 +0000

BharatPe, India’s leading name in fintech, and ONDC (Open Network for Digital Commerce) today announced an integration that would enable the BharatPe customers to order and get their food delivered via its app. This eliminates the need of having multiple apps on a user’s smartphone, thereby ensuring a more seamless customer experience. This is the first integration that the BharatPe has announced post the launch of consumer payments last month. This feature will be enabled for 15 million BharatPe customers.

The customers will have seamless access to over 1.4L restaurants across 400 + cities listed on ONDC Network on the BharatPe app. The app enables the users to browse through a comprehensive list of local restaurants and cuisines, including not only the popular chains but also the hidden gems. The interface is intuitive and easy to use, ensuring a smooth experience while placing orders. Additionally, customers will have the option to track their orders in real-time basis, from preparation to delivery. BharatPe app will also be able to offer tailored food recommendations based on user preferences and order history.

Commenting on this, Mr. Nalin Negi, CEO, BharatPe, said, “In August end, we rebranded postpe app to BharatPe with the objective of providing a unified platform and an enhanced experience to both merchants and consumers. With the recent launch of UPI TPAP, we aim to further drive the adoption of digital payments by enabling millions across the length and breadth of Bharat to make seamless and secure UPI transactions. We are excited to participate in the ONDC ecosystem to offer a relevant use case to our users, who can now order and get food delivered via our BharatPe app. Also, this resonates well with our mission to empower the growth of local businesses. With ONDC Network live on our app, thousands of small and independent food outlets will be able to reach new and a larger set of consumers and grow their business. I would like to thank ONDC for having us onboard and enabling the merchants of Bharat. We stay committed to adding new verticals and exploring synergies to offer best-in-class experience to our users.”

Mr. Thampy Koshy, MD & CEO, ONDC, said “Integrating food ordering into BharatPe’s app redefines convenience for consumers while opening new growth avenues for local food businesses. This move exemplifies our vision of a more inclusive digital economy, where small businesses can thrive without traditional barriers. We aim to continuously simplify and expand digital commerce to benefit both merchants and consumers, driving a seamless, accessible experience for all.”

BharatPe turns EBITDA positive

United News of India (UNI) — Tue, 28 Nov 2023 14:33:46 +0000

Kolkata, Nov 28 : BharatPe, one of India’s leading players in the fintech sector, on Tuesday announced that it has turned EBITDA positive in October 2023.

Additionally, it shared that its annualised revenue has surged past Rs. 1,500 Cr, a growth of 31% from FY23, according to a media statement here on Tuesday.

This financial milestone is attributed to consistent growth across all its business lines. The company has also significantly cut down its EBITDA burn—which was averaging at Rs. 60 Cr per month in FY23—to attain EBITDA positivity.

This significant milestone in conjunction with strong growth is a testament to the efforts of the team, enabled by strategic guidance from the Board. The company will continue taking strides toward being a market leading financial services platform for the 50 million small businesses across India.

The company has experienced consistent growth in its lending vertical over the past several months. In October, it facilitated loans exceeding Rs. 640 crores for its merchants in partnership with its NBFC partners, demonstrating a spike of 36% Y-o-Y. BharatPe has facilitated loans totaling over Rs. 12,400 crores since its foray into this segment in late 2019.
Additionally, it recorded growth across verticals – including its payment products. The company also saw remarkable growth in the number and amount of transactions done on its soundbox devices. BharatPe, in October, also recorded a monthly TPV of over Rs. 14,000 crores across its diverse range of payment products.

Speaking on the milestone, Nalin Negi, CFO and Interim CEO, BharatPe, said*, “BharatPe was started with the vision of empowering millions of offline merchants and MSMEs across the country, with best-in-class fintech products. This milestone reflects the trust bestowed upon us by our vast network of over 1.3 crores merchant partners. October was a great month for us- we achieved significant growth with loans facilitated on our platform. Also, our digital payments verticals grew considerably, boasting a monthly transaction count exceeding 37 crores. We will continue to cater to the needs of our merchant partners as well as customers and our strategic focus will be to ensure sustained profitability across our business lines. In the coming months, we’ll focus on scaling our lending, POS, and soundbox businesses. We will also focus on launching new products tailored for our merchant partners while concentrating on the development of our consumer and NBFC businesses.”

Added Nalin, “This achievement is a testament to the dedication and hard work of our team. I would like to congratulate each and every team member of BharatPe for achieving this milestone. Moving forward, we continue to stay committed to build a sustainable business with growth across business lines. We will continue to focus on driving financial inclusion across Bharat, empowering more offline merchant businesses. Our goal is to establish BharatPe as one of the largest merchant-first fintech companies in the country.”

BharatPe former MD Ashneer Grover and wife detained at airport

Mahita Jain — Fri, 17 Nov 2023 13:17:21 +0000

In a recent development, Ashneer Grover, the former managing director at BharatPe, and his wife Madhuri Jain were stopped at the Indira Gandhi International Airport while en route to New York. This move comes in light of an ongoing investigation into alleged fraud at BharatPe, prompting the issuance of a lookout circular (LoC) earlier in the week by the Economic Offences Wing (EOW).

Sindhu Pillai, Joint Commissioner of Police (EOW), confirmed that the couple was detained before security checks and directed to return to their Delhi residence. They have been requested to join the probe at the EOW office at Mandir Marg next week. Pillai clarified that the LoC was issued to prevent the couple from traveling abroad, emphasizing that they have not been formally arrested as of now.

In December 2022, BharatPe filed a criminal complaint against Grover, his wife, and her family members, accusing them of orchestrating a ₹81.28 crore fraud. One of the allegations involves ₹7.6 crore purportedly paid by BharatPe to eight HR consultants associated with the accused individuals between 2018 and 2021.

The detention of Ashneer Grover and his wife adds another layer of complexity to the situation, underscoring the need for a thorough and impartial investigation to uncover the truth behind the accusations leveled against the former managing director and his associates.

In a statement addressing the recent events at the airport through a tweet, Ashneer Grover shared his surprise at being stopped, stating that he hadn’t received any communication or summons from the EOW since the FIR in May until 8 AM on the morning of the 17th. He clarified his intent to travel to the US from November 16 to 23 and expressed confusion over the sudden LoC hindering his departure, highlighting his past international travels post the FIR without issue. Despite the flight’s departure, EOW directed immigration to allow their exit, and Grover noted the morning summons received at home, assuring cooperation. He dismissed any dramatics, mentioning the process to remove the LoC, emphasizing he’s not a flight risk and expressing readiness to prove it. Grover concluded with a resilient tone, acknowledging ongoing rumors and suggesting not to declare him ‘gone’ until the matter unfolds properly.

Ashneer Grover’s “advice” to startup CEOs as online gaming subject to 28% GST

Avinash Ram — Wed, 12 Jul 2023 17:10:14 +0000

On gambling sites, casinos, and horse racing, the Goods and Services Tax Council decided to impose a 28% tax on the whole face value of the transactions. Ashneer Grover, the co-founder of BharatPe, and other members of the online gaming community were highly disappointed by the decision. As he escalated his criticism of the government, he said that it was time for company owners to run for office and be heard.

“Rest in peace, Indian real money gambling business. If the government believes that individuals would put in Rs 100 to play on Rs 72 pot entry (28% Gross GST), and if they win Rs 54 (after platform fees), they will pay 30% TDS on that — for which they will receive a free swimming pool in their living room come the first monsoon — that is not going to happen. According to Grover’s tweet.

The fantasy game business, which is currently dead, was enjoyable to be a part of. During this monsoon, $10 billion was lost. Otherwise, this will happen in sector after industry, therefore it’s time for startup founders to become involved in politics and be heard, “he continued. Grover. In April of this year, Grover released his own fantasy game platform, called Crickpe. Users may build a virtual cricket team in the game using the players’ existing forms. Depending on how those cricketers perform in actual matches, the players can then receive points and cash rewards. The council claims that there should be no distinction between a “game of skill” and “game of chance”; this eliminates a loophole that permits fantasy sports businesses to claim that their offers are skill-based.

Grover continues to strike :
According to him, he would adore it if the government implemented a 28% GST and a 20% TCS on land transactions.
“I really enjoy India! amazing irony Uncles puffing on cigarettes while drinking their beverages, boasting about how they got their money via land speculation, making plans for their next trip to a casino in Macau, and making judgements about how internet gambling is ruining the youth, the author said.

Grover escalated his criticism of the BCCI by asking why the cricket body was permitted to take Dream 11 (a well-known fantasy game with a similar premise to the Crickpe).
“Also, why is internet gaming being judged now? Everyone has backed internet gaming, including Sourav Ganguly, MS Dhoni, and Virat Kohli. Why did the Indian public, government, and BCCI not object to all cricket players endorsing? Why was Dream 1 permitted to serve as the BCCI’s title sponsor? Doglapan hai, Sab The only reality is that tech entrepreneurs are unnecessary, he said.

BharatPe’s Malviya Nagar warehouse reports Rs. 50 lakh damage from short-circuit fire

Dixita Hazarika — Thu, 29 Jun 2023 13:30:03 +0000

A fire broke out at Malviya Nagar area in fintech unicorn BharatPe’s warehouse in Delhi last night. The cause of the fire was reportedly an electrical short-circuit, which damaged swipe machines, soundboxes and other company material worth Rs 50 lakh.

A company spokesperson said, “ An unfortunate incident occurred at BharatPe’s warehouse last night.The incident was reported to the authorities, and emergency services responded promptly to ensure the safety of the surrounding areas.”

She further added that, “The affected warehouse primarily stored faulty or discarded devices. Our preliminary estimates indicate a loss of under Rs 50 lakhs. We are in touch with the authorities and are working diligently to assess the situation thoroughly.”

More updates on this incident are yet to come.

Zippee raises $1.6 million with aid of Haldiram Products & additional investors

Avinash Ram — Wed, 28 Jun 2023 15:23:36 +0000

In addition to angel investors Ashneer Grover (BharatPe), Kunal Shah (CRED), Peyush Bansal (Lenskart), Prashant Pitti (EaseMyTrip), and Aakash Anand (Bella Vita Organic), same-day delivery platform Zippee announced on Wednesday that it had raised $1.6 million in a new funding round from New Delhi-based Haldiram Products Pvt Ltd. Venture capital firms including FounderBank Capital, PiperSerica, and Misfits Fund also took part in the round.

The Gurgaon-based business, formerly known as ZFW Dark Stores, has previously secured $1.7 million from a number of start-up founders, South Asia Tech Partners, and US logistics fund Riso Capital.

Madhav Kasturia launched Zippee in 2021; it provides same-day delivery through the companies’ own websites for direct-to-consumer businesses. The Face Shop, Epigamia, Clinikally, Power Gummies, Anveshan, SEPOY&CO, and Haagen Daaz are just a few of the companies it has collaborated with. The Zippee network of 170 dark shops in India allows brands to connect their online stores to its e-commerce fulfilment infrastructure and begin same-day deliveries.

“Brands report increases in online conversions & repeat business of up to 95% when same-day deliveries are incorporated into their customer journeys. Today, SDD is something that every forward-thinking D2C business in India wants for their clients, but they lack the infrastructure, technology, and resources to make it happen. The solution to it is Zippee, according to Kasturia, who released a statement. In addition to Delhi, Bengaluru, Mumbai, Pune, and Hyderabad, the firm has dark stores in all major metropolises.

The funding would be used by Zippee to boost recruiting, develop its technological foundation, and extend same-day delivery to 15 locations, the company said.

According to projections from Avendus Capital, the investment banking division of financial services company Avendus Group, direct-to-consumer (D2C) businesses may be looking at a $100 billion addressable consumer market in India by 2025.

Here’s how former Co-Founder Ashneer Grover took a dig at BharatPe amid ongoing Rs 88 crore lawsuit

Sakshi Vats — Wed, 22 Mar 2023 11:59:24 +0000

In the middle of the ongoing BharatPe lawsuit worth approximately Rs 88 crore, former Co-Founder Ashneer Grover took a subtle dig at the firm. Wherein, he questioned the recent operational changes that took place in the firm while being in the capacity of its shareholder. Moreover, he commented that he was a little puzzled being a former Shark and judge on Shark Tank India. As a BharatPe shareholder, Grover wanted to know whether his shareholding had his investments in a FinTech or a Law firm. Further, the maverick entrepreneur questioned whether new cases coming against “Ashneer Grover” every week were a feature or a product release of the firm.

After Grover’s tweet his followers and many other Twitter users came through to support his statement. While, other netizens were seen disappointed over BharatPe’s decision to sue him. Netizens responded in his support making snarky comments over the Fintech firm.

One user wrote: ‘Bhai share bech do! Abhi ke abhi!”

While another wrote: “They miss you and you’re busy.” There were even some users who trolled Ashneer Grover as well based on speculations of financial irregularities that took place under him.

The Delhi High Court had previously warned Grover’s lawyer to ask him to behave properly online and “maintain decorum” and not to run a “vicious campaign”. Since this could be observed as an attempt of defamation against the Indian Fintech giant and could be treated as “libel” in the court of law.

Bhavik Koladiya, co-founder of BharatPe, filed a lawsuit against Ashneer Grover

News Desk — Wed, 18 Jan 2023 04:37:23 +0000

As per the Economic Times, BharatPe co-founder Bhavik Koladiya has taken his former partner Ashneer Grover and the fintech startup to court to regain his shares in the company. Koladiya, however, didn’t give any specifics and instead told ET, “I cannot comment on this case since it is sub-judice presently. You are welcome to meet with my solicitors.” Koladiya and Shashvat Nakrani founded Gurugram-based BharatPe in 2018. Ashneer Grover was later hired as a co-founder and Managing Director.

Koladiya quit the company in August 2022. BharatPe issued a statement announcing his departure, “Bhavik Koladiya has been associated with BharatPe as an Independent Consultant, guiding our Product and Technology teams. His contract tenure ended on July 31, 2022 and he expressed his desire to spend time on other assignments outside BharatPe.”

the situation, his position in the company would have hindered fundraising conversations with large institutional investors. Koladiya was jailed in the United States for operating a food shop and receiving digital payments without a licence. As a result, Koladiya was forced to resign and sell his shares.

People traditionally commit such shareholding to current stakeholders through a call-option agreement, which is a contract between two or more parties in which the buyer gains the right to exercise his option to acquire a certain asset from the seller for a specified length of time.

Grover has repeatedly said that Koladiya sold his shares to him and other buyers, including Nakrani and early investors, in many meetings. Koladiya, on the other hand, told ET Prime in a statement that he had triggered an agreement he had signed with Nakrani and Grover in 2018 to obtain his ‘pledged shares’ in BharatPe.

He further said that, while Nakrani had following through on the agreement that would have made him a stakeholder of BharatPe, Grover wouldn’t have.

RBI grants in-principle authorisation to BharatPe to function as an online payment aggregator

Aryan Jakhar — Tue, 10 Jan 2023 10:46:13 +0000

The Reserve Bank of India (RBI) has granted the fintech upstart BharatPe an in-principle authorization to function as an online payment aggregator (PA). The permission was obtained by Resilient Payments Private Limited, a wholly owned subsidiary of the business.

Worldline ePayments India, a company that processes digital payments, and Paysharp, a fintech startup, had also got in-principle authorization from the RBI to function as a PA in December.

Several other fintech businesses have received approval for the PA licence, including Open, Infibeam, and Cashfree.

By taking consumer payment instruments, a payment aggregator offers payment services to merchants and e-commerce websites. After a predetermined period of time, they combine the monies collected from clients and transfer them to merchants.

In addition to enabling bank transfers for merchants without the need to open accounts directly with a bank, their services also include facilitating integrated payment methods such as cash and check transactions, as well as online and offline touchpoints.

The RBI stated in a fresh set of regulations released in March 2020 that it must approve all PAs.

Non-bank businesses that provide PA services were told by the RBI to apply for authorization by June 30, 2021. Later, the due date was raised to September 30, 2021. Applications for a PA licence had been submitted by over 185 start-ups and fintech companies. The central bank has direct control over the few businesses that have been granted operating permission.

Nalin Negi, CFO and interim CEO, BharatPe, said “This in-principle approval will help catapult our expansion plans and enable us to reach out to millions of more unbanked and underserved merchants, provide digital payment acceptance solutions and in turn, get them to be a part of the Digital India story.”

The accomplishment of a few requirements is necessary for the final authorization. As soon as BharatPe receives the final RBI approval, it will start working on meeting the aforementioned requirements within the allotted time frame and establish the aforementioned online PA business.

Since the split between previous managing director Ashneer Grover and significant investors, the company has been mired in controversy. The fintech unicorn said that its income increased by 169 percent to Rs 321 crore in FY22, while its loss increased by 89 percent to Rs 5,594 crore during the same period due to a number of significant exits.

BharatPe CEO Suhail Sameer to quit company

Aryan Jakhar — Tue, 03 Jan 2023 07:04:47 +0000

BharatPe’s CEO, Suhail Sameer, will step down from his position later this week as the Indian financial startup struggles to find a new leader after dumping its founder last year for allegedly misusing company funds.

The startup with its headquarters in New Delhi, which is funded by Sequoia India, Tiger Global, Coatue, Dragoneer, and Ribbit Capital, announced that Sameer will transition to a strategic advisor role on January 7 and that Nalin Negi, the company’s current chief financial officer, will serve as the interim CEO.

“We have recognized the need to dedicate time and resources to finding the leader who will continue to catapult BharatPe to new heights, and we are grateful for the commitment from Suhail and Nalin. We look forward to supporting Nalin Negi in his role as the interim-CEO, as we move ahead in our mission of empowering millions of MSMEs with a range of world-class financial products,” said Rajnish Kumar, Chairman of BharatPe Board, in a statement.

Ashneer Grover, the founder of BharatPe, was forced to retire last year following an oddly public fight with the startup’s board, which claimed that he had misappropriated company cash. The startup also filed a lawsuit against Grover and his wife, Madhuri Jain, last month for damages totaling $10.7 million.

The second part of 2021 saw Sameer assume the role of CEO. Grover claimed that Sameer had turned into the “board’s puppet” as the two’s relationship deteriorated and the startup looked into fraud claims made against Grover.

Early on Tuesday, the Indian newspaper Mint was the first to report about Sameer’s departure.

The latest setback at the Indian fintech, which formerly provided fierce competition to established players with its QR-code and payments solutions for merchants, is Sameer’s departure. A once-rapidly expanding fintech company, valued at $2.85 billion and with over $580 million in funding to far, is still reeling from the drama surrounding the departure of its founder and has turned into the clown car of the Indian startup scene.

The management and leadership teams of the business have been overhauled during the past two years by Rajnish Kumar, the former chairman of State Bank of India, but it is still uncertain whether his gamble will be successful.

Ashneer Grover says that “No BharatPe without me” as senior executives resign from fintech company

Aryan Jakhar — Tue, 29 Nov 2022 02:23:38 +0000

After three senior executives left BharatPe, Ashneer Grover, the former co-founder and managing director, has taken a new jibe on November 28.

“There is no BharatPe without Ashneer Grover,” he wrote.

Sharing a report by LiveMint, Grover on his Twitter handle wrote, “Good people don’t work for companies. They work with magical Founders to create, build and grow ! There is no BharatPe India without Ashneer Grover.”

https://twitter.com/Ashneer_Grover/status/1597167060122935296?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1597167060122935296%7Ctwgr%5E953838c1d717069a370bf825af2dfd2658cc3581%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.livemint.com%2Fnews%2Findia%2Fno-bharatpe-without-me-says-ashneer-grover-as-senior-executives-quit-the-fintech-giant-11669684382370.html

According to two people with knowledge of the situation, three senior executives have left BharatPe. Vijay Aggarwal, the chief technology officer, Nehul Malhotra, the head of PostPe, and Rajat Jain, the chief product officer for lending and consumer products, are the senior executives who have submitted their resignations.

In addition to this, two to three exits at the mid-managerial level have also occurred, including those of Geetanshu Singla, VP-technology, and Manas Poddar, a programme manager at BharatPe.

After a third-party audit allegedly found serious governance failures under Grover, BharatPe, which enables store owners to accept digital payments through QR codes, has removed Grover from all titles and positions. Grover’s resignation and the removal of his co-founder and other titles came after the company fired Madhuri Jain over allegations of “extensive misappropriation of company funds” by “creating fake vendors” to steal money and “using company expense accounts” to “enrich themselves and fund their lavish lifestyles.”

BharatPe CEO Suhail Sameer broke his silence over claims that he forced out troubled co-founder Grover and defended his actions on behalf of a company, investors, and himself.

Since the start of 2022, BharatPe has been dogged by scandals and saw a significant number of top-level departures. Nishit Sharma, the organization’s former chief revenue officer, left in June 2022. One of the key members of the tech team and a founder member of BharatPe, Satyam Nathani, left the company the same month in order to pursue his entrepreneurial goals.

The biggest setback was Bhavik Koladiya’s departure, who oversaw the fintech company’s technology and product. In the final week of June, he cut ties with the business.

These exits occur as the fintech company transforms into a professionally managed organization. BharatPe, which is currently working to become profitable, is also getting ready for an IPO that will happen in 18 to 24 months.

Koladiya and Shashvat Nakrani, who was then enrolled in IIT-Delhi, co-founded BharatPe in July 2017 and were responsible for its incorporation in March 2018. They each owned a 50% stake in the company. Grover joined as the third co-founder in June 2018, which was three months later. After raising $370 million under the direction of Tiger Global in August 2021, the company joined the unicorn club. Rajnish Kumar, a former SBI chairman, was named chairman of BharatPe in October 2021.

BharatPe employee blames company for not paying his salary, Ashneer Grover hits out at current CEO in comments

News Desk — Thu, 07 Apr 2022 11:01:08 +0000

Employees in the fintech company BharatPe recently took over LinkedIn to share their concerns over delays in salaries and termination of employees, without any genuine reasons. Employees have wrote that people who joined the company ever since it started were laid-off and now stand no where amid ‘internal politics’ in the company.

This comes at a time of issues between Ashneer Grover and the company. Interestingly, replying to the post on LinkedIn wherein the employee complained about salaries being delayed, Ashneer commented, “Folks please look into this. Not done – their salaries have to be paid before anything.” The ex founder also tagged ‘Suhail Sameer – the current CEO of the company’.

Check out employee’s post:

The issue doesn’t just ends here as Ashneer Grover’s sister Aashima Grover joined the conversation in the comments, and commented, “That it’s (the management) is a shameless bunch.”

To which, Suhail replied, “Behen, tere bhai ne saara paisa chura liya. Very little left to pay salaries.”

However, in another comment later, Suhail had apologized, stating that the comment by him was for a particular statement and not the post.

GST officials to further investigate into alleged tax evasion by BharatPe

Vaishali Pandey — Wed, 09 Mar 2022 12:26:00 +0000

The probe into alleged tax evasion by financial provider BharatPe has been broadened by the GST intelligence authorities. Authorities are also looking into the issuing of false invoices by associates of expelled co-founder Ashneer Grover.

The GST officials are also looking at BharatPe’s records from the previous four years to determine whether any false invoices for services were also issued.

BharatPe co-founder Ashneer Grover and his wife, Madhuri Jain, were both fired from BharatPe after a preliminary report from an external audit commissioned by the fintech firm’s board revealed that the couple had engaged in suspected wrongdoing and financial irregularities.

The termination is based on a report provided to the BharatPe board on January 24 by Alvarez and Marsal (A&M). In January, BharatPe formed a review committee to investigate various suspected financial irregularities and governance shortcomings at the three-year-old fintech startup.

The preliminary study by A&M uncovered two severe cases of fraud at BharatPe, including anomalies in recruiting and payment of non-existent vendors. Jain, who has been in charge of BharatPe’s procurement, admin, and human resources divisions since 2018, is suspected of being involved in both fraudulent operations.

BharatPe’s books have been under investigation by GST officials since last year for suspected issuing of invoices without any real delivery of products, and the Directorate General of GST Intelligence (DGGI) launched a search operation at the fintech firm’s headquarters in October last year.

After a month-long quarrel, Ashneer Grover resigns as MD of BharatPe

Vineet Jain — Tue, 01 Mar 2022 04:27:20 +0000

Ashneer Grover, who has been at odds with the board of fintech BharatPe, has resigned as MD and director, only days after his wife Madhuri Jain Grover was fired as head of controls on charges of money misuse, according to CNBC-TV18.

Ashneer Grover stated in his resignation letter to the board: “I write this with a heavy heart as today I am being forced to bid adieu to a company of which I am a founder. I say with my head held high that today this company stands as a leader in the fintech world. Since the beginning of 2022, unfortunately, I’ve been embroiled in baseless and targeted attacks on me and my family by a few individuals who are ready not only to harm me and my reputation but also harm the reputation of the company, which ostensibly they are trying to protect.”

Grover also questioned media leaks when excerpts from Alvarez and Marsal’s audit report began circulating on social media.

In his resignation letter, Grover wrote: “From being celebrated as the face of Indian entrepreneurship and an inspiration to the Indian youth to build their own businesses, I am now wasting myself fighting a long, lonely battle against my own investors and management. Unfortunately, in this battle, the management has lost what is actually at stake – BharatPe.”

BharatPe announced on January 28 that it has retained Alvarez to perform a governance assessment of the firm. The following week, it confirmed the addition of PwC.

Inconsistencies in vendor relations were discovered, according to a preliminary assessment completed by Alvarez in January. Non-existent payments to suppliers and consultants were noted in the study.

At the ailing fintech BharatPe, allegations and counter-allegations have become the new routine. Soon after the embattled co-founder, Ashneer Grover made an allegation on the chairman of the board of directors Rajnish Kumar and co-founder Bhavik Koladiya, alleging that the governance assessment was riddled with bias, the company alleged him of spreading false information, which it says is inappropriate for a managing director.

“You have been indulging in spreading false and accusatory information about the senior management of the company to the family members and/or spouses of the said members of the senior management. Such abhorrent conduct on your part is completely unwarranted, and the company takes strong objection to the same. You are again called upon to cease and desist from spreading false and inflammatory content about the members of the senior management of the company. Your conduct in this regard is completely unbecoming of a managing director of the company,” the firm said in its response letter to Grover’s email on February 22.

The business did not disclose whatever information it was referring to when it said Grover had contacted the partners of those under investigation. However, Grover made the charge after accusing Kumar, a veteran of the banking sector and former chairman of SBI, of bias and prejudice. He indicated over the phone that Koladiya had contacted him for a meeting and was hostile with him over a verbal chat and that he reserves the right to take necessary legal action.

While the business accepted the call between Grover and Koladiya, it denied Grover’s assertion that it occurred from Kumar’s apartment. BharatPe said that the audio recording he provided was a personal chat between Koladiya and Grover and had nothing to do with any “official contact” of the corporation with him.

Grover has taken a leave of absence until the end of March due to his reaction to his aggressive words to a Kotak employee, the unhealthy culture at BharatPe, and his brash behaviour. His wife was likewise placed on leave.

BharatPe slaps a pink slip on its head of controls Madhuri Grover: Report

Mymun Malik — Wed, 23 Feb 2022 05:25:37 +0000

One of the largest aggregators of transactions BhartaPe comes into the limelight for the wrong reasons. The Head of Controls Madhuri Jain Grover has come under the scanner for swindling the company of close to Rs 55 crores and incurring losses to the company of Rs 10 crores.

According to MoneyControl, BharatPe’s lawyers wanted to clear the air with her as soon as they got hold of this information. She denies any such episode and says people are using her as the ‘object’.

Apparently, Madhuri had scooped out the company’s funds stating she was paying a recruitment agency to hire consultants for BhatratPe, which never existed confirms the risk management firm Alvarez and Marsal.

There were a lot of discrepancies in their transactions when dealing with vendors and hence the report revealed the math not being correct. In several instances, it was Madhuri who had received the invoices herself for payments and sent them for approval by the accounts team.

Moving on, these false invoices were made by Shwetank Jain who is Madhuri’s sibling, and took the payments as recruitment spends. The payments sent to vendors never had any website or an online presence.

According to the Directorate General of GST Intelligence (DGGI) had carried out a thorough scan at BharatPe’s head office on 21st October 2021. When the DGGI questioned Madhuri’s Brother-in-law Deepak Gupta, about the remittances to the vendors, He said that the vendors never existed.

The report further said that total expenditure of Rs 53.25 crore was made towards these 30 vendors that did not exist and the company incurred a loss of Rs 10.97 crore in these dealings.

“PhonePe cannot demand exclusivity over the suffix Pe,” says Bombay HC amid clash with BharatPe

Ayisha Farah — Mon, 25 Oct 2021 15:29:12 +0000

The Bombay High Court has declared that PhonePe cannot demand exclusivity over the mark ‘Pe’ in its suit against BharatPe’s method of the suffix for its Buy Now Pay Later (BNPL) platform PostPe. In the order copy that Moneycontrol saw, the court recorded that PhonePe has no certification of ‘Pe’ independently.

“PhonePe claims that ‘Phone’ is not unique or distinctive and that the word Pe is distinctive and is a central, leading and memorable feature. It then claims that the Defendants’ (BharatPe) use of Pe is an infringement,” the order read.

The court continued that the usage of ‘Pe’ cannot be assessed separately as per law and that the terms PhonePe and PostPe must be examined as a whole. PhonePe was commanded to withdraw the suit and file a fresh case to claim exclusivity over the word PhonePe as a whole.

PhonePe in a statement on October 22, had stated that it had requested the Bombay HC and reversed the injunction later to address specific notes made by the court. The had company continued that it plans to follow up by filing a new suit. In reply to the court’s written order, BharatPe said that PhonePe has given up its call for exclusivity over the word ‘Pe’ by consent by withdrawing the suit.

“We were rather surprised by the statements made by spokespersons of PhonePe on October 22, which did not reflect the correct outcome of the proceedings in court. We had earlier refrained from commenting on the order of the Bombay High Court because the actual wording of the actual order would demonstrate how misleading PhonePe’s earlier statements to the press were,” the statement read.

BharatPe has moreover said that it aims to appeal the alleged ‘misconduct’ by PhonePe to the court’s attention.

“We will continue to take all legal remedies in law, not only to defend ourselves against any ill-conceived actions taken by PhonePe but also to protect our rights in law,” added BharatPe. In September 2019, PhonePe also submitted the Delhi HC against the competitor for using the suffix, inquiring a similar directive. In April this year, the Delhi High Court rejected PhonePe’s plea while noting that BharatPe did not infringe the trademark.

PhonePe withdrew the injunction plea and moved Delhi HC for a full-fledged trial against BharatPe, which is continuing, apart from the new dispute in the Bombay HC.

RBI issues licence for small finance bank to Centrum & BharatPe

Ayisha Farah — Tue, 12 Oct 2021 16:23:52 +0000

On Tuesday, the Reserve Bank of India (RBI) released a Small Finance Bank (SFB) licence to the consortium of Centrum Financial Services Limited (Centrum) and BharatPe. “A new bank license has been issued after a gap of nearly 6 years, and we thank the RBI for the confidence shown in the abilities of Centrum and BharatPe,” Centrum stated in an administrative filing.

The new SFB has been included as ‘Unity Small Finance Bank’. “Unity as a name has tremendous significance on many counts for both Centrum and BharatPe. It is the first time ever that two partners are uniting equally to build a Bank,” they said, continuing that the intended business model is one of collaboration and public architecture, joining all its stakeholders to produce a seamless digital experience.

The SFB will take over the beleaguered urban co-operative lender Punjab and Maharashtra Bank over a period.

The chairman of BSE listed Centrum Capital, Jaspal Bindra, said that with RBI granting the license, the emphasis will turn to board creation and construction of a prime management team. The bank will become operative before the close of 2021 and aims to be India’s first digital bank.
He said the timing for combining PMC would depend on when RBI and the government release the amalgamation plan.

In June 2021, The RBI gave an “in-principle” nod to Centrum Financial Services Ltd (CFSL) to set up the SFB. Centrum will join the SME lending business and micro-credit operations of the group with the SFB to recognise Rs 426 crore. Two subsidiaries run these businesses.

Jaspal Bindra-led Centrum Capital, the holding entity for CFSL, and its partner BharatPe, a payments system company, will infuse Rs 1,800 crore into the SFB. BharatPe will also move loan assets to Unity SFB. The statement added that Centrum’s MSME and Micro Finance businesses shall be joined into Unity Small Finance Bank.

Commenting on the progress, Jaspal Bindra, Executive Chairman, Centrum Group, said, “We are delighted to receive the license and excited to partner with BharatPe to create this new age bank, with a strong team. We aspire to be India’s first Digital Bank.”

“I wish to thank RBI for entrusting the Unity of BharatPe and Centrum with the SFB License. We will work tirelessly and smartly to capture this opportunity and build India’s first truly Digital Bank ground up,” added Ashneer Grover, Co-Founder and Managing Director, BharatPe.

Former Chairman of SBI, Rajnish Kumar to become the new Chairman of BharatPe

Ayisha Farah — Tue, 12 Oct 2021 06:53:01 +0000

Former Chairman of State Bank of India (SBI), Rajnish Kumar, has joined the board of Fintech firm BharatPe as its Chairman. Kumar’s activity across India’s financial division will be a priceless supplement to the board of BharatPe.

Kumar will lead the BharatPe team during the transformation into a small finance bank. He will also be included in determining the company’s short-term and long-term strategy.

“In just 3 years, BharatPe has come a long way in becoming a trusted name in the financial services industry. It has redefined payments with its products like interoperable QR and has also emerged as the largest B2B lender in the industry. This company has a huge opportunity ahead and it would be great to work closely with its young and talented team to build financial services for the India of tomorrow,” Kumar said.

Remarking on the post, Ashneer Grover, Co-Founder and Managing Director, BharatPe said, “It is a matter of great validation and pride for us that one of the biggest stalwarts of the Indian Banking Industry has agreed to join BharatPe as the Chairman of the Board. We look forward to invaluable guidance from Rajnish Kumar as we build India’s largest digital credit provider. We are confident that under his able guidance, BharatPe will attain newer heights and build the best-in-class Fintech for the new India.”

After four decades of service in October 2020, Kumar resigned from the country’s largest lender and was earlier designated as a non-executive director for banking giant HSBC’s Hong Kong-headquartered Asia section. Kumar was also designated as the senior advisor by Baring Private Equity Asia and an advisor to Kotak Investment Advisors.

Meanwhile, BharatPe has recently declared its venture into the ‘Buy Now Pay Later’ (BNPL) section with ‘postpe’ and aims to promote a loan book of USD 300 million (about ₹2,245 crores) via PostPe in the first 12 months for its lending associates.

Consumers can download the ‘postpe’ app from Play Store and avail interest-free credit limit of up to ₹10 lakh. The product can also be applied for micro-purchases. PostPe is the Global Sponsor of the ICC T20 World Cup to be held in Dubai this year.

BharatPe, which had accumulated $370 million in funding (including secondary component) in August 2021 at a valuation of $2.85 billion, is backed by investors like Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, Insight Partners and Sequoia Growth.

BharatPe wins a rare banking licence in India

Diya S. — Mon, 21 Jun 2021 10:51:09 +0000

Hardly a three-year old payment startup, BharatPe, will be the half-owner of a bank in India which is a prize that has avoided many pedigreed tycoons of the country.

Jaspal Bindra, who is going to own the other half, had to wait for six years to receive this opportunity, ever since his leadership as the top Asia banker at Standard Chartered Plc ended amidst a bulk of losses in India as well as Indonesia.

The regulator is rewarding BharatPe and Bindra for accepting to help remove the debris of a scam-tainted small leader. After Punjab & Maharashtra Cooperative Bank made 70 per cent plus of its loans to a bankrupt shantytown developer, it had collapsed. For the prevention of a run, the Reserve Bank of India (RBI) had to stop the depositors of PMC from freely accessing their money in the month of September, 2019.

Two years later and after two COVID-19 waves, the stuck saves have found a resolution: BharatPe and Bindra’s Centrum Capital Ltd. will be putting their financial businesses into a newly licensed bank with tasks of making small-ticket loans to unbanked segments of the population. For the privilege of receiving the license, the new lender has to assume at least some liabilities of PMC along with its moth-eaten assets.

As of yet, how much of the past baggage the new bank is expected to carry is not clear. After RBI relaxed withdrawal restrictions in June 2020, PMC’s March 2020 deposit base of ₹107 billion might have shrunk. But, around 80 per cent of its 45 billion rupee loan book had gone bad by the month of March last year.

BharatPe allows merchants to accept payments from apps that are famous amongst consumers. It has not joined the unicorn club of startups with at least $1 billion in valuation.

The RBI has responded to the coronavirus pandemic by slashing interest rates as well as making around 7 percent of GDP available in easy liquidity.

BharatPe raises ₹139 crore as debt funding from Alteria Capital & ICICI Bank

Ruchira Sonawat — Mon, 18 Jan 2021 09:15:48 +0000

A debt funding of ₹139 crore has been raised by FinTech company BharatPe from Alteria Capital and ICICI Bank on Monday. The company raised ₹90 crore from Alteria Capital and ₹49 crore from ICICI Bank and has raised a total of ₹199 crore in debt to date.

“We have committed ourselves to have $700 million of loans to small merchants and Kirana store owners by March 2023 and are hoping to on-board more institutional debt partners in the near future. We aim to become a digital bank that is the one-stop destination for merchants for all kinds of financial services and this tranche of funds will get things rolling,” said Ashneer Grover, Co-Founder and CEO, BharatPe.

Loans of ₹200 crore are being disbursed by the company to merchant partners and it has set a target of disbursing ₹1,000 crore of loans in the FY21.

“We have already disbursed loans to more to 1 lakh merchants and aim to scale this up by 8-10 times and enable credit for a million (10 lakh) Kirana store owners in 2021,” said Suhail Sameer, Group President, BharatPe.

Last week, the fintech company announced that it has raised ₹60 crores in debt from Innoven Capital, Asia’s leading venture debt and speciality lending firm.

PMC Bank Bid: BharatPe may repay 100% to retail depositors

Sanah Shah — Sat, 16 Jan 2021 06:35:37 +0000

In a joint bid for Punjab and Maharashtra Co-operative (PMC) Bank, BharatPe and Centrum could pay back 100% retail depositors, who want to withdraw.

The Times of India reported that Bharat Pe and Centrum have submitted a combined offer for the lender. “BharatPe and Centrum are finalizing a strong bid. After submitting the bid, the RBI is expected to meet the bidders one-on-one to pick the winning offer,” a source told the newspaper.

The Reserve Bank of India (RBI) has not responded to queries sent by The Times of India.

Liberty Group led by Sanjeev Gupta, which had also submitted a bid for PMC Bank, the cancellation of flights between India and the UK had made conducting due diligence difficult, the report said.

According to the report, the RBI had extended the deadline for bids to 1st February 2021 after a request by Liberty Group

A spokesperson of the Liberty Group and BharatPe co-founder Ashneer Grover refused to comment.

The report also included two other independent business families who had submitted an expression of interest (EoIs) for PMC Bank.

The Central Bank on 18th December 2020 said PMC Bank had received four expressions of interest and also extended the restrictions on the lender to 31st March 2021.

Top 3 BharatPe’s executives exit company due to disruptive work culture

Shlok Arya — Tue, 24 Nov 2020 10:05:54 +0000

Three senior executives of fintech startup BharatPe have left the company due to the startup’s aggressive work and indecisive authority.

The source requested to be anonym while giving out the information.

Subhasis Beura, head of New Brands and Commerce; Pavan Pathak, Senior Vice President, products; and, Aviral Gupta, Head of Investor Relations and Financial Planning, are leaving the two-year-old startup, only months after a senior-level appointment and exits.

According to the source, it is to be believed, some of the top executives left this year without even waiting for their ESOPs (Employee Stock Ownership Plan) to vest the minimum period after which they can be sold.

On Monday, CEO Ashneer Grover said, “At BharatPe, attrition has been very much under control. We have seen negligible leadership exits at BharatPe over the last two years. A few team members who decided to move on in the past, did so to pursue more senior opportunities or start their entrepreneurial journey. In fact, working for 18-24 months with a fast-growth company like BharatPe considerably helps professionals enhance their skill sets. This makes them a highly desired asset across companies.”

Moneycontrol reported that the source said, “The company has an atmosphere where CEO Grover calls all the shots, and many senior executives have little to no power.”

“It is my way or the highway when it comes to him. With senior people, there should be that room to have a discussion and figure it out, but you never feel like he cares for what you say,” a senior executive said.

BharatPe appoints ‘Jasneet Kaur’ (Ex-PepsiCo & Microsoft) as CHRO

Ruchit Purohit — Tue, 25 Aug 2020 16:39:09 +0000

BharatPe, India’s largest merchant payment, and lending network company, further strengthened its leadership team by appointing Ms. Jasneet Kaur as Chief Human Resource Officer. Jasneet’s appointment comes at a time when BharatPe is going through a massive expansion phase. Jasneet will work closely with the leadership team to ensure the rapid growth of the company through strategic talent management and dissemination of the company’s core values and culture across the organization.

Jasneet is a seasoned HR professional with 21 years of cross-functional Human Resource Management experience across companies such as DHL, PepsiCo, Maersk, Microsoft, Mercer, Reliance Life Sciences. She was awarded ‘Titan of the Year’, the highest annual award for spearheading HR Transformation at Maersk Global Service Centres.

Mr. Ashneer Grover, Co-Founder & CEO, BharatPe, said, “We are excited to welcome Jasneet to our core leadership team. She brings in a wealth of experience and best practices from global companies. Jasneet’s skills and experience give us huge confidence in building a high performance and culture centred organization.”

Mr. Suhail Sameer, Group President, BharatPe said, “I am confident in her ability to implement the right processes, and programs that will help us create an environment that attracts, retains and develops high potential talent at BharatPe.”

“It was clear from my first interaction with the company that BharatPe is committed to creating a vibrant workplace dedicated to fostering innovation and diversity as it builds a disruptive business. Happy to be a part of the team,” said Jasneet Kaur, CHRO, BharatPe.

Ankur Jain from Walmart Labs becomes chief product officer at BharatPe

Anushka Sharma — Mon, 01 Jun 2020 11:15:55 +0000

BharatPe, India’s merchant payment, and lending network company, has strengthened its leadership team by appointing Mr Ankur Jain as Chief Product Officer. Ankur will be responsible for the complete product lifecycle and innovation at BharatPe. Heading product management and user experience across customer touchpoints, Ankur will contribute to BharatPe’s aggressive plans to scale up its footprint to 10 million merchants this year.

Chief Executive Officer and Co-Founder of BharatPe, Mr Ashneer Grover said, “I have a deep respect for the talent that has worked in the US – the vision with and scale at which professionals who have come back from the US operate is commendable. Ankur joining in a critical role will strengthen our core team, he has deep experience in accelerating revenue through new products and solutions, driving large-scale organizational change, and anticipating market dynamics to create new products and segments which will help us drive product innovation at a higher velocity.”

Ankur is the fifth CXO at BharatPe and joins Vijay Agarwal (CTO), Nishit Sharma (Chief Revenue Officer), Puneet Agarwal (Chief Risk Officer), and Nishant Jain (Chief Business Officer) in the core team.

Ankur, an alumnus of Stanford University has a rich experience of working in deep technology startups like Kosmix and Instalocate where he served as CEO and Co-Founder and where he served as was Senior Director of Product Management.