Fintech startup BharatPe has been making headlines over the past couple of months, but all for the wrong reasons. In a latest development, BharatPe’s founder Bhavik Koladiya has reportedly taken legal action against BharatPe’s now-ousted co-founder Ashneer Grover and the fintech firm to reclaim his shares back. The development comes months after Koladiya’s departure from BharatPe in August last year.

BharatPe did not respond to the queries sent by Fortune India.

According to reports, the matter has been listed in the Delhi High Court. Koladiya and Shashvat Nakrani founded BharatPe in 2017 and incorporated the fintech firm in March 2018. The company onboarded Grover as the third founder in June 2018. At that time, Koladiya had the largest equity shares in the company having a stake of 42.5%, followed by Grover who had 32% equity shares, and Nakrani, who had 25.5% equity shares.

However, in December 2018, just before the US-based Sequoia became an investor in the firm, Koladiya had to quit the company owing to his history of serving jail term in the US in relation to credit card fraud. As per reports, the move was taken so that fundraising by the fintech firm from big institutional investors would not be hampered by Koladiya’s murky history. Following this, the former Shark Tank India judge became the face of the company, whereas Koladiya became the consultant in the company.

Eventually, to reduce Koladiya’s public involvement in the company, the founders, angel investors, and other stakeholders reached an arrangement with Koladiya to transfer his stake to Grover, Nakrani, Nakrani’s father Mansukhbhai Mohanbhai Nakrani, who is also Koladiya’s school teacher and some angel investors.

According to reports, though Grover had multiple times claimed that Koladiya sold his stake to the founders and other investors in 2018, Koladiya refuted such claims saying the agreement included him getting his ‘pledged shares’ back. With the lawsuit, Koladiya is planning to get his shares worth ₹10,000 crore back.

The development comes amidst the legal tussle between BharatPe and Grover over alleged misappropriation of firms. In December last year, the fintech unicorn initiated civil and criminal action against the former Shark Tank India judge, and his wife Madhuri Jain Grover, who was the company’s former head of controls, and Grovers’ relatives in relation to the misappropriation of company funds. The company also asked the Grovers to repay ₹88.6 crore with 18% interest on the swindled funds. The board earlier alleged Grover and his family of “extensive misappropriation” of company funds.

Over the past several months, the fintech firm also witnessed some high-profile exits. Earlier this month, Suhail Sameer, stepped down as the chief executive officer of the company to become a strategic advisor with effect from January 7, 2023. The company’s board appointed Nalini Negi as the interim-CEO. Grover and his wife exited the company in March last year over alleged misappropriation of funds.

Bhavik Koladiya

BharatPe founder Bhavik Koladiya sues Ashneer Grover