Every day, BharatPe witnesses a new controversy and a slew of questions about cofounder Ashneer Grover, another cofounder Bhavik Koladiya, and a slew of corporate governance and, as a result, due diligence questions for investors.
If Grover's reputation in the startup world as a brash and outspoken personality was a forerunner to some of these allegations, the others have surfaced in recent months and weeks as the drama surrounding his dealings with investors and a public fallout over a failed financing bid for the Nykaa IPO has unfolded.
Grover, who has called CEO Suhail Sameer a "puppet of investors," has claimed that there is a conspiracy behind his removal and the launch of an investigation. BharatPe's life has also been complicated by reports of embezzlement, impropriety in merchant dealings, and a lopsided lending business model. Before investing millions of dollars in a company, venture capital firms such as Sequoia, Coatue, Ribbit Capital, and Beenext must answer serious questions about flaws in their due diligence process.