BharatPe cofounder Ashneer Grover: BharatPe cofounder Ashneer Grover has started talks with investors to sell his 9.5 percent stake in the fintech startup. The Economic Times has given this information quoting two sources. He said this could potentially lead to his exit from the company.
Things changed after the audio leak
Grover has floated the sale talks amid an ongoing investigation into BharatPe and an independent audit that has pointed to financial irregularities at the startup.
There has been a corporate tussle between the company and its founder for over a month after an audio leak. In that video, Grover purportedly spoke in abusive language to an employee of Kotak Mahindra Bank.
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… Grover himself may be out of the company
This secondary cell indicates that Grover himself will exit the company once the final findings of the current investigation are submitted. Earlier on January 31, it was reported that Grover has appointed some lawyers in anticipation of such a situation as the distance between the founder, Bharatpe board and the company’s shareholders is increasing. Two people familiar with the development said that Grover is preparing for a stake sale before the findings of the investigation come before the company’s board.
Can agree on low valuation
The current valuation of the Delhi-based company is around $2.8 billion. The company helps small businesses by providing financial services to offline merchants.
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Another person privy to the developments said, “Even though Grover is offering his stake at full price (current valuation), he may agree to a valuation of around $1 billion. However, finding a buyer will not be an easy task considering the developments of the last month.
First right of refusal with the main investors
According to sources, Grover may sell his shares at a lower price in an attempt to monetize his stake. “He (Ashneer) has initiated talks with several investors to sell his stake, but the main investors are given the right for the founder’s shares,” said one person, expressing the low chance of any existing shareholders buying more stake in the fintech company. Off First Refugee (ROFR). They will need clearances, which will be very important.”
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