PayPal Faces Lawsuit Over Alleged Racial Discrimination in Investment Program

Indian-American entrepreneur Nisha Desai claims her venture fund was excluded from PayPal's diversity initiative due to race-based criteria favoring Black and Hispanic-led firms.

• Nisha Desai, founder of Andav Capital, has filed a federal lawsuit against PayPal, alleging racial discrimination in its $530 million diversity-focused investment program launched in 2020.
• Desai claims her firm was denied funding because the program prioritized Black and Hispanic-led businesses, excluding Asian-American applicants despite their minority status.
• The lawsuit alleges that PayPal's racial preferences cost Andav Capital millions of dollars in potential investments and opportunities for growth.
• PayPal has declined to comment on the pending litigation, while Desai is represented by Consovoy McCarthy, a legal firm known for challenging race-based programs.
• The case adds to a broader legal push questioning the legality of corporate diversity initiatives, following high-profile cases like the Fearless Fund and affirmative action rulings.

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