E-commerce technology startup Zilingo has suspended CEO Ankiti Bose amid an investigation into the company's accounting practices. Although the company has not disclosed details, the investigation may have started early this year, when Zilingo reportedly began reaching out to investors for a new funding round. The company was seeking to raise US$150-200 million and had engaged Goldman Sachs to broker the deal.
However, in the process of due diligence, auditors apparently found irregularities in the way that Zilingo was accounting for transactions and revenue across its e-commerce platform. The company has not filed financial statements since 2019 - the year of its most recent funding round before the latest attempt - hence the effect of its accounting practices on its bottom line is not publicly known.
That was when several major investors, including Singapore-based Temasek Holdings and Sequoia Capital's India arm, launched an investigation into the matter, according to a Bloomberg report. Bose was informed about the concerns by the board on 31 March and subsequently questioned by the investigating firm. Her suspension will run until 5 May.
She has disputed the complaints and engaged an attorney to represent her.