(Bloomberg) — Zilingo Pte has fired co-founder and Chief Executive Officer Ankiti Bose, deepening a dispute over accounting practices that’s plunged the once high-flying startup into crisis and sent shockwaves through Singapore’s technology industry.
Zilingo ousted Bose after an investigation led by an independent forensics firm into complaints of serious financial irregularities, it said in an emailed statement on Friday. The company “decided to terminate Ms Ankiti Bose’s employment with cause, and reserves the right to pursue appropriate legal action,” it said in the statement.
Bose said in a separate statement to Bloomberg News her employment was terminated on grounds of “insubordination.”
The development underscores deepening difficulties at Zilingo after Bose was suspended from her duties March 31. Kroll Inc. is leading a probe into its finances.
The co-founder has been locked in a feud with the board and major Zilingo investor Sequoia Capital India amid allegations of potential accounting irregularities. Bose has disputed the claims of wrongdoing, Bloomberg News has reported.
The startup Bose created with Dhruv Kapoor in 2015 is now the target of an investigation into its financial practices amid complaints of serious irregularities, Zilingo said on Friday. Creditors of Zilingo have decided to recall their loans, prompting the company’s board to appoint an independent financial adviser for options for the troubled Singapore-based fashion tech startup.
“I have been suspended for the last 51 days on the basis of an anonymous whistle-blower complaint, and today I am informed that my employment has been terminated inter alia on grounds of ‘insubordination’,” Bose said in a statement.
Read more: Zilingo Appoints Financial Adviser as Creditors Recall Loan
Some of the concerns relate to the way that Zilingo, which regulatory filings show had not filed annual financial statements since 2019, accounted for transactions and revenue across a platform spanning thousands of small merchants.
Zilingo’s directors talked regularly in mid-April to consider Bose’s future, and that of the startup itself, Bloomberg reported April 19. The co-founder, meanwhile, had pressed the board to clarify her status in part because she was concerned the company was growing rudder-less.
As the clash between Bose and the board escalated, Bose hired an attorney to fight back against what they have described as a “witch hunt.” Bose has argued that she is getting blamed for decisions and practices that were well known by senior managers and directors, people familiar with the matter have said.
Zilingo had been one of the highest-profile startups to emerge from Singapore. Major investor Temasek Holdings Pte has expressed concern the meltdown is tainting its reputation and urged the company to fix the situation, people familiar with the matter have said.
The company raised $226 million at a valuation of $970 million in 2019 when Bose was 27 years old. But the Covid-19 pandemic took a toll on its business: Revenue dropped by about a third in fiscal 2021 to roughly $40 million. Bose took a pay cut of about 30% as a result, while the company laid off staff.
(Updates with Bose’s and company’s comments from the fourth paragraph)
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