BREAKING ITS SILENCE over controversy at fintech firm Bharat Pe, Sequoia Capital India on Sunday said it has zero tolerance towards proven wrongdoing and will continue to respond strongly to wilful misconduct or fraud, so that a few errant founders do not create big setbacks for the start-up ecosystem.
Sequoia, which is the largest shareholder in BharatPe, where co-founder Ashneer Grover was virtually sacked from his role, in a blog on its website said it won't hesitate to act to protect the interests of shareholders and employees even if it costs it financially.
“We will take tough calls where needed in the interest of doing what is right," it said without directly mentioning BharatPe.
Sequoia, which holds 19.6% of BharatPe, did not say if it had insisted on removal of Grover after a third-party audit alleged grave governance lapses under him.
BharatPe, which allows shop owners to make digital payments through QR codes, first sacked Madhuri Jain, wife of Grover, for alleged misappropriation of company funds. This was followed by Grover resigning and the company stripping him of the cofounder and other titles over alleged "extensive misappropriation of company funds" by “creating fake vendors” to siphon money and using "company expense accounts” to "enrich themselves and fund their lavish lifestyles". Grover has denied any wrongdoing.
The India unit of the American venture capital firm said it wants companies that are not just valuable but also enduring.
This story is from the April 18, 2022 edition of Financial Express Mumbai.
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This story is from the April 18, 2022 edition of Financial Express Mumbai.
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