Corporate Governance issues at IPO-bound FinTech firm BharatPe
BharatPe, a payments company that services shop owners with QR codes, is facing intense investor scrutiny over alleged corporate governance lapses and a bitter internal tussle between co-founder Mr. Ashneer Grover and the board. The firm engaged an independent firm M/s Alvarez and Marsal to launch an independent governance audit which suggested inconsistencies in dealings with vendors and also highlighted deals with vendors and payments to consultants that are non-existent. BharatPe has also roped in consultant PwC for a full-scale investigation into the company’s practices, including accounting, approval processes, expenses, and hiring. The Board may take action on basis of findings of the Audit Report. Reserve Bank of India is looking into any possible instances of corporate governance lapses at the FinTech startup.
