In an attempt to address the concerns of the staff of the fintech firm, BharatPe‘s chief executive Suhail Sameer has written a letter to its employees on Friday morning saying the company is “under constant scrutiny and spotlight” and “what is being written is nothing but unsubstantiated rumors”. He said that they have decided to do a full audit of the governance processes based on some internal complaints. “Review is still substantiating the more serious complaints,” he wrote in the letter reported CNBC TV18.
“Let me talk about the elephant In the room first – the governance review being carried out by well-known and reputed external firms… Based on some internal complaints, we decided to do a full audit of our governance processes. While many of the findings of the review are pretty standard for a fast growth company of our size, there are a couple of more serious, which the review is still substantiating,” said Sameer in the internal memo. “ This is nothing which can’t be corrected going forward, and none of it has any bearing on the medium to long term health of the business. We expect the review partners (consultants) to share an interim report with the board in a couple of weeks,” reassured Sameer to employees in a letter that has been reviewed by CNBC TV18.
“Many findings of the review are pretty standard, but there are a couple of more serious as well. The review is still substantiating the more serious. Even as there’s nothing which can’t be corrected going forward; it has no bearing on the medium to long term health of the business,” he said.
Madhuri Jain’s Letter to Alvarez & Marsal
In another letter, Madhuri Jain, controller at BharatPe and wife of the company’s cofounder Ashneer Grover, has written a letter to Alvarez & Marsal (A&M), in which she has questioned the consulting firm about the recent media leaks and said he was considering taking legal action. Jain, in her letter, has also questioned the manner in which a probe into alleged irregularities at the fintech firm is being conducted.
Jain’s letter said that she was considering legal action against the firm, and has demanded an internal investigation on how the contents of the probe undertaken by A&M were allegedly ‘leaked’, ET reported.
“It is quite surprising that the report which has been made available to the media is neither available with the company nor has been provided to me,” said Jain in the letter addressed to Manish Saigal, A&M’s managing director in the country.
BharatPe-Ashneer Grover Tussle
Earlier, Kotak Group placed on record its objections to Grover’s alleged use of inappropriate language and brash behaviour. The BharatPe MD had accused the bank of failing to secure financing and allocation of shares in beauty firm Nykaa’s initial public offering.
Following the controversy, Grover and his wife Madhuri Grover, took a voluntary leave of absence after the company initiated an independent audit.
Media reports have now claimed that Grover is looking to exit the firm amid and is in talks with investors to sell his 9.5 per cent stake in BharatPe that he values at Rs 4,000 crore.
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