In response to rising concerns over governance, fintech firm BharatPe said on Saturday that it is conducting an independent audit of its internal processes and systems.
The news comes just days after Ashneer Grover, BharatPe's co-founder, and MD, took a voluntary leave of absence until the end of March after facing flak for allegedly using abusive language with a Kotak Mahindra Bank employee. Madhuri Jain Grover, Grover's wife, and BharatPe's head of controls were also present during the talk. She is also said to have taken a leave of absence. The couple allegedly insulted the manager for failing to acquire an allotment and financing for Nykaa's IPO, according to an audio clip shared on Twitter. Grover first stated in a tweet that the clip was a hoax, but then retracted his statement.
BharatPe has hired Alvarez and Marsal, a consulting firm, to perform an independent audit to improve internal procedures and systems.
“The Board of BharatPe is committed to the highest standard of corporate governance at the company and is doing an independent audit of the company's internal processes and systems,” said the company. “BharatPe, through its legal firm, Shardul Amarchand Mangaldas has appointed Alvarez and Marsal, a leading management consultant and risk advisory firm to advise the Board on its recommendations.”
Many in the industry say that, aside from the Kotak scandal, there had been growing concern about BharatPe's work culture receiving increasingly negative press, as well as Grover's appearance on the popular start-up TV show Shark Tank, where some of his comments while talking to entrepreneurs pitching for funds sounded rude: Sources