Medikabazaar ousts former CEO Vivek Tiwari over fraud allegations

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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.