Better Home & Finance Removes Vishal Garg as CEO, Names Daniel Lewis

Vishal Garg, the Indian-origin entrepreneur who became widely known after dismissing around 900 employees during a Zoom call in 2021, has been removed as chief executive of Better Home & Finance. Garg was ousted on August 3, with hedge fund manager Daniel Lewis taking over as CEO shortly after joining the company’s board. Garg has described his removal as a betrayal and alleged that Lewis gained his confidence before persuading other directors to replace him.

Garg told CNN that Lewis had approached him months earlier with proposals focused on cutting costs and improving Better’s finances. According to Garg, he trusted Lewis enough to offer him a seat on the board after Lewis publicly praised the company’s strategy. “He hoodwinked me,” Garg said, alleging that Lewis used his support for Better to gain the confidence of the company’s leadership before ultimately taking over the top position.

Better experienced rapid growth during the pandemic as mortgage refinancing surged and interest rates fell below 3 per cent. The company was once valued at about $8 billion, but its fortunes changed sharply as mortgage rates climbed towards 7 per cent and refinancing activity declined. Better’s annual sales reportedly dropped from around $1.5 billion in 2021 to approximately $70 million in 2023, while its market value has since fallen to about $300 million.

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Garg’s tenure was also marked by several controversies, most notably the 2021 mass layoffs conducted over a video call. The episode generated widespread criticism and resulted in Garg taking a leave of absence. Better subsequently faced a whistleblower lawsuit, an investigation by the US Securities and Exchange Commission and a difficult 2023 SPAC merger, after which the company’s stock plunged by 93 per cent.

Despite the setbacks, Garg maintains that Better was beginning to recover under his leadership. He pointed to the company’s use of artificial intelligence to accelerate mortgage processing and a partnership with Neo Home Loans, which he said doubled productivity and cut loan origination costs by 50 per cent. Garg also cited partnerships with Intuit, Coinbase and OpenAI and claimed that Better’s loan volume had tripled and the company was approaching profitability.

Lewis joined Better’s board on July 27 and was appointed CEO about a week later following Garg’s removal. Garg believes the board made a mistake and is seeking reinstatement, saying some investors have contacted him since his departure. He has special voting rights through Class B shares and has hired lawyer Alex Spiro of Quinn Emanuel. Garg has also offered to return for a salary of $1 a year until Better becomes profitable, saying he remains optimistic about the company’s future.

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