Following a governance review, BharatPe said on Tuesday that it has taken the necessary steps against a former founder to reclaim his restricted shares. The firm stated in a statement that it will take all necessary steps to enforce its legal rights.
BharatPe’s board of directors initiated a corporate governance review in January 2022.
The company had hired Alvarez & Marsal (A&M), a global professional services firm known for its turnaround management and performance improvement work, Shardul Amarchand Mangaldas & Co (SAM), India’s leading law firm, to assist the board and management with their governance review, and PwC, a leading consulting entity, to determine wilful misconduct and gross negligence by a former founder.
“After a thorough review of the above report over the last two months, the board of BharatPe has recommended several decisive measures, which are currently being implemented,” according to the statement.
These include a new code of conduct for senior management and employees, a new and comprehensive Vendor Procurement Policy, vendor blocking for malpractices, and regular internal audits.
“BharatPe has also fired several employees from departments who were directly involved with the blocked vendors. If necessary, the Company will file criminal charges against some of these employees for their misconduct and acts of deception against the company “It stated.
BharatPe reported the best quarter in its history (Q4 FY22), with a 4x increase in overall revenue.
“Despite the third wave of Covid-19, sequential-quarter growth has been 30 percent.” In March 2022 over February 2022, all of our metrics grew at the fastest rate, including merchant Total payments value, i.e., TPV (17%), consumer TPV (39%), loans facilitated in partnership with RBI registered NBFCs (31%), and revenue (21%).
“Going forward, we are on track to break even on our merchant business and further strengthen our consumer business,” the company said in a statement.