BharatPe chairman Rajnish Kumar on January 5 refused comment on the fintech unicorn’s ousted co-founder Ashneer Grover’s remarks that the former SBI chairman was his biggest hiring mistake.
“I have never commented on what Ashneer Grover says. I will never stoop to that level. Constantly I have maintained that stand. I have not changed. I have remained the same person. when I joined BharatPe and what I am today. I don’t change my colours,” Kumar said in an exclusive interview to Moneycontrol in the first of its Banking Central interview series.
“It is not right for me to respond to Ashneer Grover… somebody who doesn’t know there is difference between an executive of a company and a director of a company… about their roles and responsibilities. I don’t think it deserves a comment.”
What did Ashneer Grover say?
On December 16, Grover, who helmed the company till March this year before an acrimonious exit, said bringing former State Bank of India (SBI) chairman on Board was his "biggest hiring mistake".
Kumar, who was with the State Bank of India, for around four decades, joined BharatPe in October 2021 and was appointed the fintech unicorn's chairman.
According to Grover, he "overlooked data" while bringing the veteran banker for the leadership position at BharatPe.
"Rajnish Kumar was my biggest hiring mistake. Not only because of what transpired - but bcoz I overlooked data. Under Rajnish as CMD, SBI stock tanked 25% in 3 yrs (₹257 —> ₹192). That’s $8 Bn of value destruction. After he left it went to ₹570 (up 200%). Data is never dogla! (sic)," Grover had tweeted.
Watch the interview: 'No Leadership Crisis, Attrition Normal': BharatPe Chairman Rajnish Kumar On Exits, Ashneer Grover
Myopic to look at share price only
Kumar said looking at only the share price of large corporations is myopic. "It is a myopic view," said Kumar. "Any informed or knowledgeable person with basic understanding is aware that corporations are not built for quarterly performance and they are built for sustainability," Kumar said.
The four-year-old company has been embroiled in a series of controversies since the beginning of 2022, when Grover was accused of using inappropriate language and threatening a Kotak Group employee for failing to secure an allotment and funding for the Nykaa IPO for himself and his wife, Madhuri Jain Grover.
Grover and Madhuri were ousted from the company over allegations of misappropriation of funds.
Kumar joined BharatPe in October 2021 as non-executive chairman after serving as the SBI chairman from October 2017 to October 2020.
Also read: How BharatPe racked up Rs 5,594 crore loss in FY22
No leadership crisis
Kumar denied a leadership crisis at BharatPe, saying the firm is attracting new talent despite a series of senior-level exits in the past year.
“Crisis happens only in weak companies. There is no leadership crisis in BharatPe. We are attracting new talent,” Kumar said.
He said the executive search firm appointed to look for new chief executive officer (CEO) after the exit of Suhail Sameer has received lot of interest. On January 3, Sameer stepped down as the CEO.
The search firm would submit its proposals after shortlisting some applicants after which the Board will appoint the new CEO, Kumar said.
Top level exits
Four of the company's senior executives, including chief technology officer Vijay Aggarwal, chief product officer for lending and consumer products Rajat Jain, and head of consumer lending platform PostPe Nehul Malhotra, left BharatPe in 2022.
Geetanshu Singla, vice president, technology, too, quit the Tiger Global and Sequoia-backed firm following Grover’s exit in March and that of co-founder Bhavik Koladia in April.
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