Indian-American entrepreneur Vishal Garg, known for dismissing 900 staff members during a brief video call in 2021, has been removed from his position as chief executive of Better Home & Finance.
The decision occurred in early August when a hedge fund manager named Daniel Lewis, recently appointed to the board, assumed the role of interim CEO. The board, excluding Garg, unanimously decided to end his tenure due to issues with his judgment, temperament, and credibility. They also referenced cumulative losses over 1.5 billion dollars since 2022 and a stock price drop exceeding 90 percent under his leadership.
This marks another chapter in Garg’s career. He established Better after dissatisfaction with conventional mortgage procedures. Originally from India and raised in New York, he attended Stuyvesant High School and New York University’s Stern School of Business. He had previously co-founded MyRichUncle, an online student lending service, and launched Better in 2014.
His handling of staff reductions drew widespread attention. In December 2021, he informed over 900 employees via Zoom that their positions were eliminated immediately. Following public backlash, he took a temporary leave before resuming his duties.
Years later, Garg recognizes the incident harmed the company’s image but maintains he was dismissed as the firm neared recovery. He noted in an interview that loan volumes had tripled and profitability was near, positioning the company at a critical juncture. He expressed surprise at the board change, claiming the new member had supported the strategy publicly.
The firm, once valued at around 8 billion dollars amid the pandemic, now stands at approximately 300 million dollars in market value. Revenue fell sharply from 1.5 billion in 2021 to 70 million in 2023, though projections indicate 200 million by 2026. The company is focusing on artificial intelligence for mortgage processes and has entered home-equity lending.
Garg is challenging the removal through legal means, proposing to work for a nominal salary until profitability returns, and claims support from certain shareholders.
He acknowledged imperfections in execution over the past decade but remains optimistic about the company’s prospects.
