New Delhi: Singapore-based fashion technology startup Zilingo on Friday said it has sacked its Indian-origin co-founder and CEO Ankiti Bose after conducting an independent forensic audit of complaints about serious financial irregularities. Bose was suspended on March 31 following complaints of alleged discrepancies in the company’s accounts.
“Following an investigation led by an independent forensics firm that was commissioned to look into complaints of serious financial irregularities, the company has decided to terminate Ankiti Bose’s employment with cause, and reserves the right to pursue appropriate legal action,” Zilingo said in a statement.
The firm, however, did not elaborate on the allegations against Bose or the findings of the audit.
The board had suspended its CEO and co-founder Ankiti Bose in March with the backing of major investors, pending a probe by an independent firm they hired. 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.
Bose said in a separate statement to Bloomberg News her employment was terminated on grounds of “insubordination.”
Zilingo works with thousands of apparel factories and merchants in South Asia and Southeast Asia, connecting them to retailers worldwide and was valued at nearly $1 billion in its last funding round in 2019, according to sources familiar with the situation.
The company was founded in 2015 by Bose and chief technology officer Dhruv Kapoor as a Southeast Asia focused e-commerce firm and then transformed into a global supply chain enabler for the highly fragmented apparel sector.
It provides logistics, financing and other services to factories and merchants.
Fashion technology startup Zilingo’s debtholders have decided to recall their entire loan, leading the Singapore-based company to appoint a financial adviser to assess options, its board said on Friday.
“Due to Zilingo’s failure to fulfill prior obligations under the loan agreement, the company’s lenders have made the decision to accelerate the repayment of the entire loan,” Zilingo’s board said in a statement to Reuters.