Founder of Andav Capital Claims Exclusion from PayPal’s Diversity Program Due to Asian Heritage
Nisha Desai, the founder of venture firm Andav Capital, has filed a lawsuit against PayPal, alleging that she was excluded from the payment giant’s diversity and equity program due to her Asian heritage. The suit claims that PayPal’s program unfairly favors Black and Hispanic-led businesses, discriminating against Asian-American applicants.
Background on PayPal’s Diversity Program
In 2020, PayPal made a $530 million commitment to support more Black and minority-led businesses in the wake of the Black Lives Matter movement. However, according to Desai’s lawsuit, the program had a racially exclusionary approach, favoring firms led by Black and Hispanic individuals over others.
Desai’s Allegations
Desai claims that she applied for PayPal’s diversity program but was overlooked due to her Asian heritage. In her suit, she alleges that PayPal’s head of public policy and research explicitly told her in a meeting that the program prefers Black and Hispanic-led firms "over other races and ethnicities, including Asian Americans."
Consequences of Exclusion
Desai claims that her rejection from PayPal’s investment commitment cost her firm "vital capital worth millions of dollars." The suit also alleges that those who received PayPal checks were able to leverage those awards into additional investments, greater brand equity, resources, access, and success. Meanwhile, funds like Desai’s that were rejected suffered from the adverse and inaccurate perception that PayPal had made a decision based on the merits of their business rather than the race of the fund’s ownership.
Civil Rights Act Violations
Desai alleges that PayPal violated the Civil Rights Act of 1981 by discriminating against her due to her Asian heritage. The suit also claims that PayPal’s "racially exclusionary investment program" is illegal under New York state and city laws that prohibit racial discrimination.
Representation by Consovoy McCarthy
Desai is represented by Consovoy McCarthy, a conservative legal firm with a history of taking on cases related to race-based programs. The law firm notably sued Pfizer for its diversity program, which targeted Black, Latino, and Native Americans, alleging the program discriminated against white and Asian American applicants.
Similar Cases
Desai joins a growing list of plaintiffs who have filed lawsuits against companies accused of racial discrimination in their diversity and inclusion programs. Sean O’Kane contributed reporting to this story.
Update: Comment from Consovoy McCarthy
In an update, Consovoy McCarthy provided comment on the lawsuit: "PayPal’s discriminatory practices against Asian-American applicants are unacceptable. We look forward to taking on this case and bringing about accountability for PayPal’s actions."
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Topics
- DEI (Diversity, Equity, and Inclusion)
- PayPal
- Venture
Author Bio
Dominic-Madori Davis is a senior venture capital and startup reporter at TechCrunch. She is based in New York City and can be reached on Signal at +1 (646)-831-7565.
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