It was founded by Vardhamana Suri (till 1031). His teacher was a temple-dwelling monk. He rejected him because of not following texts. His pupil, Jineshvara, got honorary title 'Kharatara' (Sharp witted or Fierce) because he defeated Suracharya, leader of Chaityavasis in public debate in 1023 at Anahilvada Patan. So the Gaccha got his title.
Another tradition regards Jinadatta Suri (1075-1154) as a founder of Gaccha.