BharatPe boardroom tussle: Co-founder Nakrani says he supports CEO Sameer

Shashvat Nakrani's backing for Suhail Sameer comes amid Ashneer Grover's demand for his ouster

BharatPe co-founder and board member Shashvat Mansukhbhai Nakrani said on Saturday that he has not sought the removal of CEO Suhail Sameer from the board.

According to media reports yesterday, embattled BharatPe co-founder and managing director Ashneer Grover, along with Nakrani, had sought the withdrawal of their nomination of Sameer to the board. 

“I have neither given my consent, nor sought the removal of Suhail Sameer from the Board of BharatPe and fully support his continuance on the board. News reports suggesting this are incorrect. I can confirm that I was one of the two joint nominees in the appointment resolution of Suhail Sameer as the CEO and Board member of BharatPe, and he continues to enjoy my support," Nakrani said.

Grover, who last month went on a voluntary leave of absence till March even as the board started an audit of the firm, told Moneycontrol that he would leave the company if investors bought out his 9.5 per cent stake for Rs 4,000 crore. According to data from Tracxn, Grover’s stake of 9.5 per cent in the company was worth Rs 1,915 crore based on the last funding round in August 2021.

Grover has also alleged Sameer manipulated him into going on leave last month.

“In the last round, he (Sameer) sold Rs 11 crore worth of ESOPs (employee stock option plans). I have created value for him -- real value, not paper value. After having done everything and giving someone full degree of freedom to operate, if you operate in a manner and side with the investors when I need you the most, then you don’t enjoy my confidence. Why should the puppet of the investors be my nominee on the board?” Grover is quoted as saying by the financial news website.

“BharatPe’s last funding round was at $2.8 billion and all Grover’s antics over the past month are sure to have shaved off a large part of that if it was a public company. He must realise he will only hurt the company’s valuation by mudslinging in the public,” said a venture capital investor.

Sameer joined BharatPe in August 2020 as group president after a stint of four years at RP-Sanjeev Goenka Group. An IIM-Lucknow and Delhi College of Engineering alumnus, Sameer was elevated to CEO at BharatPe in August last year. He has worked for consumer companies (like FMCG and retail) and consumer technology firms, and with institutional investors, an earlier statement from the fintech company said.

Sameer declined to comment on the issue. Grover did not respond to Business Standard’s queries and calls. Sequoia Capital, which is the largest shareholder in BharatPe with a 19.6 per cent stake, also declined to comment on the matter.

“We are deeply pained that the integrity of the BharatPe board or individual board members is being questioned time and again through misrepresented facts and baseless allegations. The Board in all its actions has followed due process in the best interest of the company,” said a statement from BharatPe on Friday evening. 

“We would urge that the confidentiality and integrity of the Governance review and board meetings is maintained by all. The Board is yet to receive any interim or final report of the review,” it added.

Amid growing concern over governance issues, BharatPe last week announced an independent audit of its internal processes and systems was being conducted by Alvarez and Marsal through its legal firm Shardul Amarchand Mangaldas.