BharatPe began as a fintech disruptor and quickly grew into one of India’s most talked-about startups. Founded in 2018, the company offered merchants a unique QR code-based payment system that accepted payments from multiple UPI apps. BharatPe’s simplicity, aggressive expansion, and merchant-focused products attracted investors and customers alike. At the center of this meteoric rise stood Ashneer Grover, co-founder and managing director, known for his sharp mind, aggressive business strategy, and controversial persona.
However, in late 2021 and through 2022, BharatPe’s success story took a dramatic turn. What started as a leaked audio clip spiraled into a full-blown corporate drama involving public spats, boardroom clashes, forensic audits, and multiple resignations. At the heart of the chaos lay allegations of financial irregularities and toxic workplace behavior.
Let’s unpack the explosive fallout between Ashneer Grover and BharatPe, and how it exposed deep flaws in startup governance and founder conduct.
The Rise of Ashneer Grover
Ashneer Grover co-founded BharatPe with Shashvat Nakrani and Bhavik Koladiya. Before BharatPe, Grover held positions at Kotak Investment Bank, Grofers (now Blinkit), and American Express. At BharatPe, he positioned himself as a no-nonsense leader, pushing hard for results. Under his leadership, BharatPe scaled rapidly, onboarding over 7 million merchants and expanding into credit and banking services.
Grover became a public figure, especially after appearing on the Indian edition of Shark Tank. His blunt feedback and unapologetic style made him a polarizing personality but helped raise BharatPe’s visibility. By mid-2021, BharatPe had raised over $600 million and achieved a valuation exceeding $2.8 billion.
But fame often invites scrutiny. In early 2022, the tide began to turn.
The Leaked Audio Clip That Sparked It All
In January 2022, an anonymous Twitter account leaked an audio clip allegedly featuring Ashneer Grover verbally abusing an employee of Kotak Mahindra Bank. The context: Grover reportedly lashed out after Kotak failed to secure funding for his investment in the Nykaa IPO.
Grover initially denied the authenticity of the clip, calling it “fake” and the product of a “scamster.” But Kotak Mahindra Bank quickly responded with a legal notice, confirming the altercation. The leak marked the beginning of Grover’s very public downfall.
Following the controversy, Grover went on “voluntary leave” until March 2022. The BharatPe board, meanwhile, appointed Alvarez & Marsal and PwC to conduct a forensic audit of the company’s finances and operations. What followed was a Pandora’s box of alleged misconduct.
Financial Irregularities and Audit Revelations
As the audit teams delved into company records, troubling findings began to emerge. Alvarez & Marsal’s preliminary report found irregularities in vendor payments worth crores of rupees. Investigators linked these payments to companies associated with Grover’s wife, Madhuri Jain Grover, who served as BharatPe’s Head of Controls.
The report alleged fake invoices, inflated vendor payments, and misuse of company funds for personal luxury expenses. Expenses included company-paid family trips, spa treatments, and even personal beauty services.
The forensic audit raised serious questions about how BharatPe’s internal controls failed so severely. The board concluded that Grover and his wife had knowingly misused company funds and created a culture that normalized such behavior.
The Resignations Begin
With the audit findings in hand, BharatPe moved quickly. In February 2022, the company terminated Madhuri Jain Grover’s employment, citing financial misconduct and ethical violations. Her termination letter accused her of destroying evidence, inflating invoices, and directing payments to non-existent vendors.
Shortly after, Ashneer Grover tendered his resignation—but not without firing a few parting shots. In a scathing letter, Grover blamed the board for “playing dirty” and conducting a “sham” investigation. He accused them of being biased and lacking the entrepreneurial courage to build a company from scratch.
Grover’s resignation marked the end of his association with BharatPe, but the war of words didn’t stop there. He took to social media, claiming he built BharatPe single-handedly and deserved respect, not removal. He even accused board members and investors of conspiring to oust him and trying to take credit for his achievements.
Governance in Question
The BharatPe saga raised critical questions about startup governance in India. The company had high-profile investors, including Sequoia Capital, Ribbit Capital, and Coatue Management. Yet, for years, Grover and his close circle allegedly operated with minimal oversight.
Many investors admitted they trusted Grover’s aggressive style because it delivered rapid growth. But when the cracks began to show, the same board had to scramble to install damage control mechanisms—too little, too late.
The episode highlighted how many high-growth startups often prioritize growth over governance. It exposed the risks of founder-led authoritarian cultures where questioning leadership becomes taboo. Investors now realize the need for stronger compliance frameworks, independent audit committees, and separation between founders and financial operations.
Public Spectacle and Personal Attacks
What made the BharatPe drama unique was the extent to which it played out in public. From leaked emails and WhatsApp chats to Instagram stories and media interviews, Ashneer Grover engaged in a relentless media campaign to defend himself and attack his critics.
He claimed victimhood, suggesting that the board scapegoated him to cover their own failures. In response, BharatPe released statements asserting that Grover’s removal aimed to protect the company’s future and uphold integrity.
This clash became a case study in how personal ego can spiral into corporate chaos. It wasn’t just a dispute over money—it became a war for public sympathy, brand reputation, and legacy.
Life After Grover: What’s Next for BharatPe?
Since Grover’s exit, BharatPe has tried to rebuild its image and restore investor confidence. The company appointed Suhail Sameer as CEO to lead the restructuring process. It also focused on strengthening internal controls, improving vendor scrutiny, and establishing a more professional board structure.
However, the company still faces multiple legal challenges. Grover continues to push back with lawsuits, demanding his shares and severance benefits. BharatPe, on the other hand, seeks to recover damages linked to alleged financial fraud.
The leadership vacuum and public mistrust have slowed BharatPe’s momentum. But with its core products still in demand and a massive merchant base, the company hopes to stabilize and eventually grow beyond the controversy.
Conclusion: A Wake-Up Call for the Indian Startup Ecosystem
The BharatPe-Ashneer Grover controversy has served as a wake-up call for India’s startup landscape. It showed how unchecked power and weak governance can unravel even the most promising ventures. While Grover undeniably played a key role in BharatPe’s rise, his exit reflects the consequences of ignoring accountability.
Startups must now realize that building a great product isn’t enough. Ethical leadership, strong governance, and a culture of transparency matter just as much. Investors, too, must look beyond aggressive growth metrics and demand proper oversight.
As BharatPe picks up the pieces, the larger lesson remains clear: drama and disruption may grab headlines, but only discipline builds sustainable success.