Will respond strongly to frauds: Sequoia Capital on controversy-hit BharatPe

Sequoia Capital, the largest stakeholder in BharatPe, where co-founder Ashneer Grover was effectively fired, stated in a blog on its website that it will not hesitate to intervene to safeguard the interests of shareholders and employees, even if it means losing money.

Sequoia, which holds the largest share in BharatPe, where co-founder Ashneer Grover was virtually terminated, said it will not hesitate to protect stockholders’ and employees’ interests, no matter how costly it may be.

Sequoia, which owns 19.6 percent of BharatPe, would not specify whether it pressed on Grover’s resignation after a third-party audit found serious governance flaws under him.

Stating that it is easy to think of this issue as ascribed to poor due diligence, it said when investments are made at seed or early-stage there is hardly a business to diligence. “Even later stage investors can face negative surprises, post-investment, if there is willful fraud and intent.”

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