Andav Capital founder says black and Hispanic given preference over Asians
Trade
Image: Photo by Brett Jordan via Pexels
Nisha Desai, founder of Andav Capital, has filed suit against PayPal for racial discrimination in the company’s diversity and equity (DEI) programme, according to a report in TechCrunch. Desai claims that despite meeting with PayPal executives and discussing her company’s qualifications for a financial grant, she was excluded from the programme because it focuses exclusively on supporting black and Hispanic businesses.
The lawsuit states that PayPal’s head of public policy and research explicitly told Desai during a July 2020 meeting that the programme prioritised black and Hispanic companies over others, including companies run by Asian Americans. Desai claims that this preference for specific racial groups resulted in her company being denied “vital capital worth millions of dollars,” while other companies that received funding were able to turn their awards into more investment, brand value and resources.
PayPal’s investment strategy under its $530 million pledge, launched in 2020 after the Black Lives Matter movement, has been criticised for its race-based selection criteria. The company invested in venture capital firms led by black and Latino partners, but publicly announced it would not provide funding to Asian-American female-led funds, despite their interest and suitability. Desai argues that PayPal’s actions perpetuate a damaging perception that Asian Americans are not considered equal minorities within the programme.
Desai’s lawsuit, filed in federal court in New York, alleges violations of the Civil Rights Act of 1981 and New York State and New York City laws prohibiting racial discrimination. She is represented by Consovoy McCarthy, a law firm known for its involvement in cases against race-based programmes. The firm has previously sued Pfizer over its diversity programme and Harvard University and the University of North Carolina over their affirmative action policies.
The lawsuit highlights the growing controversy surrounding diversity initiatives that target only specific racial groups, raising concerns about fairness and equal opportunity for all entrepreneurs, regardless of background.
Business AM
