Zilingo, a Singaporean B2B fashion commerce firm had suspended its CEO Ankiti Bose after the discovery of discrepancy in company’s accounting at the diligence process when a new funding round at the firm took place.

According to sources, the Indian CEO Ankiti Bose had disagreed these allegations and claimed that her suspension was the result of the harassment complaints which she raised against an investor in the company.

She called the company’s action of her suspension “a witch hunt” which was activated by the accusations. Investors from Temasek Holding Pte and Sequoia Capital India had already started an investment into the financial practice, according to sources.

The Facts of the Matter

The B2B fashion commerce had advanced to raise $150 million to $200 million, with the aid from Goldman Sachs Group Inc. at potential valuation of 1.2 billion.

Auditors have raised questions about the accounting which concerns that the company had not filed annual financial statements since 2019, regulators said.

Company co-founder Bose hired an attorney, Abraham Vergis of Providence Law Asia, to represent her. He labeled the investigation “witch hunt”. However, when further enquired, both Zilingo and Temasek declined to comment.

According to regulatory fillings, two of Zilingo’s directors along with Temasek’s Xu Wei Yang and Burda Principle Investment Ltd. ‘s Albert Shyy, left its board last month.


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Zilingo’s Rise and Rise in Startup World

The outrageous clash represented the turn of fate for one of the most celebrated startups of Singapore. Seven years ago, Zilingo was founded by Bose and Chief Technology and Product Officer Dhruv Kapoor in Singapore. The company helped small businesses to sell their products online across South and Southeast Asia.

The founders gradually realized their lack to access to robust technology and essential capital.Thus they developed develop software and other tools that would allow merchants to access factories in places like Vietnam or Bangalore.

In early 2019, Zilingo raised $226 million from investors including Sequoia and Temasek, and pushed its valuation to $970 million, almost the $1 billion mark that earns startups designation as a unicorn. Bose, then 27, was celebrated as a visionary and a sign of the entrepreneurial potential for Southeast Asia.


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Suspension reason creates suspicion

Apart from the financial accusations, sources within Zilingo and outside claimed that Ankiti’s suspension is a case of revenge for filing complaints against the senior team and management of harassment related issues. Sources said, “Ankiti has been complaining of harassment for 2 years now.”

Was she terminated without any warning?

On 31st March, Bose was called to a meeting with three board members where she was informed about the “serious” complaints raised against the accounts mismanagement. She was later questioned by two people from Kroll, the investigations firm. Her suspension is scheduled to run until May 5.


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Questioned raised against procedure

Bose’s lawyer claimed that the directors did not follow proper procedures during the investigation. Other sources said Bose’s complaints are taken seriously and necessary legal steps will be followed.

 

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