“The Grover family and their relatives engaged in extensive misappropriation of company funds, including, but not limited to, creating fake vendors through which they siphoned money away from the company’s expense account and grossly abused company expense accounts in order to enrich themselves and fund their lavish lifestyles,” the startup said Wednesday, adding that it reserves rights to take “further legal action against him and his family.”
The board of BharatPe, a three-year-old startup that helps millions of merchants accept money digitally and provides them with credit, directed a thorough review of the company’s internal controls in January this year after receiving complaints, it said.
“I am appalled at the personal nature of the company’s statement, but not surprised,” Grover said in a statement.
“It comes from a position of personal hatred and low thinking. I think the Board needs to be reminded of $1M of secondary shares investors bought from me in Series C, $2.5M in Series D and $8.5 M in Series E. I would also want to learn who among Amarchand, PWC and A&M has started doing audit on ‘lavishness’ of one’s lifestyle? The only thing lavish about me is my dreams and ability to achieve them against all odds through hard work and enterprise. I hope the Board can get back to working soon — I as a shareholder am worried about the value destruction. I wish the Company and the Board a speedy recovery.”
Earlier this year, an alleged audio clip surfaced on Twitter of a man — presumed to be Ashneer — hurling abusive and life-threatening statements over a phone call to a Kotak Bank representative over not getting financing to buy shares in fashion e-commerce Nykaa’s IPO. The clip, which went viral on social media, triggered a chain of events that prompted the board to conduct an investigation.
But in the background, several board members and investors at BharatPe have been plotting to remove Grover from the startup for more than a year, according to two people with knowledge of the matter.
Grover, a Shark Tank India host who owns a more than 9% stake in BharatPe, has maintained innocence in recent weeks, and in a televised interview on Tuesday threatened to make public “dirt” on investors and board members if the startup continues to hurt his reputation. He said his investors are “removed from the reality” and treat founders as “slaves.”
