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Medikabazaar ousts former CEO Vivek Tiwari over fraud allegations

EntrackrEntrackr · 3m ago
Medikabazaar ousts former CEO Vivek Tiwari over fraud allegations
Medial

Medikabazaar ousts former CEO Vivek Tiwari over fraud allegations B2B medical supply chain platform Medikabazaar has removed its director and former CEO, Vivek Tiwari, from the company over allegations of malicious and fraudulent activities. The shareholders of the company have passed a resolution to remove Tiwari from the board of directors for doing fraudulent actions, according to its regulatory filing accessed from the Registrar of Companies (RoC). “Mr. Vivek Tiwari is involved in malicious and fraudulent activities, including those of financial mismanagement and financial fraud, which have caused irreparable harm and damage, and are alarming to the well-being of the company”, the filing stated. Uniqus India, Alvarez & Marsal, and M/s Rashmikant & Partners conducted the investigation and concluded that he had breached fiduciary duty and was guilty of gross negligence, misappropriation, and misstatements, the filing further stated. According to PwC auditors, inconsistencies in revenue recognition and multiple governance issues led to the removal of Vivek Tiwari from his role as Chief Executive Officer of the company last year. Medikabazaar has secured over $190 million in total funding across multiple rounds. This includes a $65 million Series D round in 2022, led by Lighthouse India, which valued the company at $700 million. According to startup data intelligence platform TheKredible, Craegis holds the largest external stake in the company, followed by Rebright Partners and HealthQuad. Co-founders Vivek Tiwari and Ketan Malkan own 12.36% and 12.35% of the company, respectively. Medikabazaar has not yet filed its annual report for the fiscal year ending March 2024. In FY23, the company reported revenue of Rs 908 crore and a net loss of Rs 304 crore. Notably, its Series C investors have raised an indemnity claim of Rs 278.7 crore, alleging misreporting in prior financial periods.

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Medikabazaar appoints Dinesh Lodha as group CEO

EntrackrEntrackr · 10m ago
Medikabazaar appoints Dinesh Lodha as group CEO
Medial

B2B medical supply chain platform Medikabazaar has appointed Dinesh Lodha as its new Group chief executive officer (CEO). With over two decades of experience in the medtech industry and a career marked by leadership roles across various sectors, Lodha brings a wealth of expertise to Medikabazaar. Before joining Medikabazaar, Lodha managed large B2B and B2C operations in FMCG and healthcare sectors. He has worked with multinational, private equity-led businesses and large publicly listed Indian companies. Founded by Vivek Tiwari and Ketan Malkan, nine-year-old Medikabazaar enables hospitals and medical establishments to discover supplies, compare specifications and prices in real-time. The product on the B2B platform includes hospital devices, materials, medical consumables, and dental tools among others. The platform offers over 4 lakh products and serves over 10,000 medical centres and over 30,000 independent doctors and clinics. It has a B2B marketplace, an AI-ML-powered SaaS solution, a medical financing solution, full stack procurement model for large hospitals, and an asset management platform for equipment business. In April 2022, Medikabazaar had scooped up $65 in a new funding round led by Lighthouse India Fund III and others at a valuation of $700 million. According to data intelligence platform, The Kredible, the operating gross revenue for the Mumbai-based company grew 2.74X to Rs 1,552.53 crore in FY22 from Rs 564.7 crore in FY21.

Medikabazaar rebounds with Rs 1,355 Cr gross revenue in FY24

EntrackrEntrackr · 1m ago
Medikabazaar rebounds with Rs 1,355 Cr gross revenue in FY24
Medial

B2B medical supply platform Medikabazaar reported a 50% jump in gross revenue to Rs 1,355 crore in FY24, rebounding from a 41% drop in FY23. However, losses widened 30% to Rs 394.8 crore. Medikabazaar’s operating gross revenue grew to Rs 1,355.6 crore in FY24 from Rs 908.5 crore during the previous fiscal year, according to its consolidated financial statements filed with the Registrar of Companies. Medikabazaar is a B2B medical supply chain platform that enables hospitals to discover medical supplies and compare specifications and prices in real-time. Its product range includes hospital equipment, diagnostic devices, consumables, and dental tools. In FY24, 98% of the company’s revenue, Rs 1,328.6 crore, came from the sale of these products. The Mumbai-based company also earned Rs 51.3 crore from interest on fixed deposits, non-current investments, and bonds, taking its total revenue to Rs 1,407 crore in the fiscal year ending March 2024. Procurement of supplies and equipment was the largest cost center for the company, accounting for 79% of its total expenses. With the increase in scale, this cost rose by 43% to Rs 1,279 crore in FY24. Employee benefit expenses rose nearly 40% year-on-year to Rs 140 crore. The company also booked a non-cash expense of Rs 66.5 crore towards doubtful debts and advances, likely reflecting delayed or potentially unrecoverable payments for supplies sold on credit. Legal and professional fees, transportation, travel expenses, and other overheads drove the company’s total expenditure to Rs 1,621 crore in FY24, a 44% increase from Rs 1,126.5 crore in FY23. With expenses and total revenue growing at a similar pace, the company’s losses rose 30% to Rs 394.5 crore from Rs 303.4 crore. These losses include exceptional items totaling Rs 178.65 crore, covering allowance for doubtful debts and advances, inventory provisions, write-offs of balances, and unclassified expenses of Rs 88.6 crore. At the unit level, it spent Rs 1.2 to earn a rupee of operating revenue. By the end of FY24, Medikabazaar’s total current assets stood at Rs 1,176.56 crore, including cash and bank balances of Rs 62.76 crore. According to the startup data intelligence platform TheKredible, Medikabazaar raised over $160 million across multiple funding rounds, including a $65 million Series D round raised in April 2022 at a $700 million valuation. In April, Medikabazaar removed former CEO Vivek Tiwari over allegations of malicious and fraudulent activities. Dinesh Kumar Lodha has been serving as the company’s Group CEO since August last year.

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