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After Vikram Akula, Arohan shows door to founder Shubhankar Sengupta

Speculation suggests that ever since IntelleCash acquired majority share at Arohan, Sengupta had lost his grip over the company which he founded in 2006.

, ET Bureau|
Jan 12, 2016, 04.00 AM IST
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Speculation suggests that ever since IntelleCash acquired majority share at Arohan, Sengupta had lost his grip over the company which he founded in 2006.
Speculation suggests that ever since IntelleCash acquired majority share at Arohan, Sengupta had lost his grip over the company which he founded in 2006.
KOLKATA: Arohan, a micro finance company backed by Michael Dell, which was taken over by Intelle-Cash Microfinance Network in 2012, has shown the door to its founder and chief executive Shubhankar Sengupta, making it the second high-profile exit in the industry after the poster boy of micro finance Vikram Akula was unceremoniously thrown out of SKS Microfinance five years ago.

Although Arohan has officially maintained that Sengupta’s ouster was part of a board level reorganisation to accommodate new investors and more independent directors, speculation within the industry suggests that ever since IntelleCash acquired majority share at Arohan and brought in new investments, Sengupta had lost his grip over the company which he founded in 2006 with the support of Bellwether.

"Our philosophy at the Intellecap Group has been to have independent director-led boards with investor and management representatives guide the operating team on strategic decision making, seeing the future trends and growing the business," managing director Manoj Kumar Nambiar told ET.

The latest investor in has been Arohanis Tano Capital, which invested Rs 60 crore worth of equity early last year, even as existing investors raised their holdings as well.

As a result, Piyush Goenka from Tano Capital has come on board, while Sanjib Jha from IntelleCash and Shubhankar Sengupta from the management side stepped down. The company has also inducted KC Vaid as a new nominee director from Small Industries development Bank of India last month.

Intellecash acquired a controlling stake in Arohan in September 2012 when the Kolkata-based micro lender was reeling under the micro finance crisis of 2010 and was looking for capital. In tellecash holds close to 30 per cent stake in Arohan at present with Aavishkaar Goodwell having the second largest interest with about 25 per cent stake, according to senior officials at Arohan.


After Vikram Akula, Arohan shows door to founder Shubhankar Sengupta
Sengupta still holds 1.5 per cent share in Arohan and will continue to remain with Arohan as a consultant till August.

"I am planning to seek new challenges in the social enterprise space and will take the next few months to decide on my area of interest," Sengupta said in his parting letter addressed to the `Arohan Family’.

"I would now like to turn my energies to some other sector which has the potential to impact the lives of the poor in a significant way," he said in the letter, making a reference to sectors such as renewable energy, skill building, education, health and agri-processing as his next possible areas of interest.

Sengupta told ET that by January he would firm up his next plan.

Also Read

Arohan Financial Services to raise Rs 315 crore in equity

Former financial services secretary DK Mittal joins Arohan Financial Services as chairman

Arohan Financial Services to enter MP and UP markets

Arohan announced Rs 155 crore capital infusion from Denmark's Maj Invest and existing investors

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