Indian American venture capitalist Nisha Desai sues PayPal for racial discrimination

NEW YORK (TIP): Nisha Desai, an Indian American entrepreneur and the founder of Andav Capital, has filed a lawsuit against PayPal, alleging racial discrimination in its minority investment program. The case, brought before the U.S. District Court for the Southern District of New York, challenges the criteria of PayPal’s $530 million initiative launched in 2020 to support minority-owned businesses.
Desai contends that the program unfairly excluded her firm by prioritizing Black and Latino-owned investment funds. She alleges that this exclusion has caused her venture capital firm, which focuses on early-stage tech-enabled companies, to lose millions in potential investments. The lawsuit claims that PayPal’s actions violate anti-discrimination laws, including the Civil Rights Acts of 1866 and 1964, as well as New York State and city human rights statutes.
“This case is about fairness and equality,” said Desai’s legal representatives at Consovoy McCarthy, a firm known for challenging diversity initiatives. Desai argues that the program’s focus on certain minority groups, to the exclusion of Asian Americans, represents unlawful racial bias.
Nisha Desai is a seasoned venture capitalist with a career spanning multiple industries. As the founder and General Partner of Andav Capital, her firm has invested in areas such as frictionless commerce, marketplaces, and enterprise software. Before establishing her firm, Desai held leadership roles at Deutsche Bank and J.P. Morgan, where she managed high-profile projects, including global restructuring programs and crisis management efforts.
Desai’s journey began as the daughter of Indian immigrants expelled from Uganda during Idi Amin’s regime. She pursued higher education, earning an MBA from The Wharton School and a B.S. with Honors in International Politics from Georgetown University. Desai is also a Chartered Financial Analyst (CFA) Charterholder and has been recognized as one of the “2021 FinTech Women Money Movers.”
In addition to her work in venture capital, Desai has contributed to the startup ecosystem as an advisor and mentor with organizations such as Techstars and Google for Startups. Her professional experience includes roles at Google, Sweetgreen, and as staff for civil rights leader Congressman John Lewis.
PayPal’s initiative was introduced in the wake of widespread calls for social justice following the death of George Floyd. The program aims to provide funding to minority-owned businesses. While the company has not commented on the pending litigation, the lawsuit has sparked broader discussions about the criteria and execution of corporate diversity programs.
Desai’s lawsuit seeks damages and injunctive relief, aiming to challenge what she views as a flawed and discriminatory approach to supporting minority businesses.
The case, which was widely reported by mainstream American media, has drawn attention to the debate on inequities in implementing diversity initiatives.