The Singapore-based B2B start-up, Jillingo, fired its co-founder and CEO, Ankit Bose, after the board fired him March 31 over allegations of financial irregularities and other allegations of revenue growth in the company’s books.
Following Bose’s suspension, a whistleblower within the company informed the board and shareholders about the alleged financial misconduct that occurred in the last two years, which Bose allegedly involved. Jilingo later opened an investigation into the company’s accounting practice and hired a third-party consulting firm in April to conduct a forensic audit.
On Friday, Zilingo said the investigation led by the forensic firm was over when it indicated the agency could take further legal action.
The statement said, “After an investigation led by an independent forensic firm, which was commissioned to investigate allegations of serious financial irregularities, the company has decided to suspend the employment of Mrs. Ankiti Bose for a reason, and reserves the right to take appropriate legal action.”
The B2B start-up, which offers a technical platform for wholesale supply to fashion retailers, is one of the most famous start-ups derived from SEA Geography. Zilingo has so far raised about $ 340 million in equity and debt financing from prominent investors including Temasek Holdings, Sequoia Capital India, Burda Principal Investments and many more. It was valued at about $ 900 million in the funding round in February 2019.
Bose has denied any wrongdoing. In a statement Friday, Bose said, “I have been suspended for the last 51 days on an anonymous whistle-blower complaint, and today I was informed that my employment has been terminated due to” illegality. ” I did not see the Crawl or Deloitte report and did not give them sufficient time to compile any document requested by them. We will abide by our rights against this magical victim to the fullest extent of the law, “Bose added.
Jilingo’s statement said that several days after his March 31 suspension, Bose brought to the attention of the board, for the first time, some harassment-related issues related to the past.
“A top consulting firm has been appointed to look into the harassment allegations brought to the notice of the board by Mrs Ankiti Bose. The investigation concluded that the company had taken appropriate action and followed due process to address the allegations against them, in contrast to media reports which stated that the suspension order on Ankit Bose and the investigation was intended to suppress the alleged harassment allegations, “the statement added.
Jillingo added that the company was “deeply hurt and frustrated by the way boards, investors and employees have been exposed and constantly attacked through leaked and fake information, which is unfortunately seen as a paid and defamatory social media campaign. Period of investigation.”
“This has caused irreparable damage to companies, boards, employees and investors,” the statement added.
On May 13, Jillingo’s creditors decided to repay their entire loan, prompting the start-up to hire a financial advisor to evaluate the options for dealing with the defaults. In a statement the same day, Jillingor’s board said that “due to Jillingor’s failure to meet its previous obligations under the loan agreement, the company’s creditors have decided to expedite full repayment of the loan.”
The FE reported on Tuesday that Geelingo co-founder Bose has sought to repay the company’s entire outstanding debt of $ 40 million. This will give him an option to gain more equity in the firm, said two people aware of the negotiations.