Better.com Founder Vishal Garg Ousted, Feuds With Successor

Better.com founder Vishal Garg was ousted as CEO in the summer of 2023, leading to a public dispute with his successor, interim CEO Daniel Lewis. Initially, Garg and Lewis shared a seemingly close relationship, with Garg texting Lewis in April about becoming "BFFs" as they collaborated on the company's turnaround. Garg founded Better.com in 2014 with the aim of making online mortgage acquisition faster and more affordable, and to develop its "Tinman" AI product for loan approvals and closings. However, weeks after Garg's removal, their relationship deteriorated publicly. Garg criticized Lewis in a group chat on X (formerly Twitter) for working remotely from the South of France instead of the New York City office. Lewis responded with a seven-part thread on X, questioning Garg's credibility and labeling him a "bully."

Better.com's board stated that the company "accumulated more than $2 billion in net losses and lost more than 90% of its value as a public enterprise" during Garg's leadership. Lewis concluded his X thread by stating, "The love died when the diligence began," reflecting his perspective on their fractured relationship. Garg remains on the company's board, and he, along with his supporters, is actively contesting control of the $230 million company against Lewis and the rest of the board. The outcome of this power struggle is expected to be decided by shareholders, with the contest deadline set for October 20, 2023. Both Garg and Lewis have taken their cases public through competing Securities and Exchange Commission (SEC) filings and public statements on X.

This public conflict highlights a significant internal struggle for control at Better.com, a company that has faced considerable scrutiny and financial challenges. The company's "Tinman" AI product is designed to streamline the mortgage approval and closing process, a key area of focus for Better.com's business model. The financial performance under Garg's tenure, marked by substantial net losses and a significant decline in market value, has been a central point of contention in the dispute. Shareholders, including major investors such as Activant Capital, Framework Ventures, and SoftBank Capital Partners, will play a crucial role in determining the future leadership and direction of the company. The public nature of this feud is unusual for corporate leadership disputes, underscoring the intensity of the battle for control over Better.com.