After Temasek backing probe, Zilingo says working closely with major investors

New Delhi: After Singapore state investment firm Temasek backed an investigation into Zilingo’s accounting practices, the fashion technology startup said it is teaming up with its major investors and an independent firm to conduct the investigation. “The company’s principal investors have authorized the board to suspend CEO Ankiti Bose, pending investigation into the matters raised,” Zilingo Pte said in a statement.

However, it did not elaborate on the investigation.

“Principal investors have hired an independent firm to investigate the matter, and the company is working closely with major investors and the independent firm to investigate,” it said.

It stressed that due process has been and will be followed.

Temasek said on Tuesday in a strongly worded manner, “We expect our portfolio companies to adhere to sound corporate governance and a code of conduct and ethics. Therefore, we are in support of the Board’s investigation of the complaint as part of the company.” of good governance to protect the interests of the

This is the second investment firm that has spoken in favor of a stronger governance framework, Sequoia India, which is also an investor in Zilingo, spoke on the subject.

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The statement comes after Zilingo’s board suspended its co-founder Ankiti Bose on March 31 pending an investigation.

Shailendra Singh of Sequoia Capital India has also resigned from the board of Zilingo after questioning the accounting practices of the fashion technology startup.

On Shailendra Singh’s resignation from the board, Sequoia India spokesperson said, “Given the prevailing circumstances at Zilingo, the Fund considers it appropriate to represent its nominee on the board with relevant experience, which the company requires at this juncture. is.”

Zilingo, a platform for fashion traders backed by Singapore’s state-owned investor Temasek Holdings, was founded in 2015 by CEO Ankiti Bose along with Dhruv Kapoor, its Chief Technology and Chief Product Officer.

Sources said Singh had resigned as director a few days ago following the departure of Xu Wei Yang of Temasek Holding Pet and Albert Shay of Burda Principal Investments Ltd.

The investigation reportedly looked into how Zilingo tracked transactions and revenues on a platform of thousands of small merchants.

In addition to Temasek and venture capital firm Sequoia Capital, Zilingo counts Burda Principal among its investors as well as EDBI, the investment arm of the Economic Development Board of Singapore. It was not immediately clear how much each investor held in the company.

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