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The BharatPe debacle: growth at the cost of governance?

Shyamal Datta (Department of Marketing, International Management Institute New Delhi, New Delhi, India)
Sonu Goyal (Department of Strategy, International Management Institute New Delhi, New Delhi, India)

Publication date: 20 June 2023

Abstract

Learning outcomes

The case is aimed at providing students with an opportunity to understand various aspects of corporate governance and the consequences of poor corporate governance. The case addresses the following objectives: The students need to assess the role of the board in implementing corporate governance. The students should be able to explain the conflicts experienced by various stakeholders in an organization. The students need to evaluate the balancing act of growth and governance in a startup. The students should be able to determine the current state of business sustainability of the high-growth startups in India.

Case overview/synopsis

The case presents the challenges faced by the CEO of BharatPe, Suhail Sameer. Beginning in 2022, Bharatpe was in deep trouble as there were allegations of financial mismanagement, toxic work culture and widening losses. Co-founder Ashneer Grover and his wife Madhuri had to leave the company following charges against them. As Grover was the face of the company, Sameer would have to quickly act on filling the void and reassuring investors. Because of the uncertainty, scores of employees had already quit or were looking for other jobs. Questions were also raised about the board’s inaction and lack of proactive measures. After a meteoric rise for three years, BharatPe was struggling to survive the whole episode and put its focus back on business.

Complexity academic level

The case is intended for MBA students in corporate governance, organizational behaviour, business ethics and strategic management areas. As the case reveals the impact of poor corporate governance, it can also be used for executive training purposes on corporate sustainability, governance and leadership with a special focus on Indian startups.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 11: Strategy.

Keywords

Acknowledgements

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality.

Citation

Datta, S. and Goyal, S. (2023), "The BharatPe debacle: growth at the cost of governance?", , Vol. 13 No. 1. https://doi.org/10.1108/EEMCS-10-2022-0377

Publisher

:

Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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