The Delhi High Court has issued summons to Asheer Grover, the co-founder of BharatPe, on a suit filed by Shashvat Nakrani, another co-founder of the company. The suit alleges that Grover has failed to pay Nakrani his rightful share of the company’s equity.
Nakrani, who was the first employee of BharatPe, claims that he was promised a certain percentage of the company’s equity in return for his services. However, he alleges that Grover has failed to pay him his share of the equity.
The suit was filed in the Delhi High Court in October 2020. In the suit, Nakrani has sought a direction from the court to Grover to pay him his rightful share of the company’s equity.
The court has now issued summons to Grover, asking him to appear before it and explain why he has failed to pay Nakrani his share of the equity. The court has also asked Grover to explain why he should not be held liable for the alleged breach of contract.
BharatPe is a payments and financial services company that was founded in 2018. It has raised over $200 million in funding from investors such as Sequoia Capital, Ribbit Capital, and Insight Partners.
The case is likely to be closely watched by the startup community, as it could set a precedent for how founders should handle equity disputes. It could also provide clarity on the legal rights of employees who are promised equity in return for their services.