Zilingo, a B2B fashion startup based in Singapore has asked its CEO and co-founder Ankiti Bose to step down from her role after investigating complaints of financial irregularities, the company said in a statement on Friday, May 18. The move by Zilingo Pte, co founded by Ankiti Bose, comes at a time when the startup is facing a deep crisis due to accounting practices. The crisis at Zilingo, once an ambitious startup, had shocked the technology industry of Singapore.
“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,” a company statement said.
In a separate statement to Bloomberg News, Ankiti Bose said her employment was terminated with regards to “insubordination.” Zilingo, however, did not provide any detail linked to the against Bose or the findings of the audit. The deepening crisis at Zilingo had resulted in the suspension of Ankiti Bose from her duties on March 31, and the latest development is a continuation of that incident. As per Bloomberg news, Kroll Inc. is leading an investigation into the company’s alleged financial misconducts.
Zilingo said Ankiti Bose made certain harassment-related only after she was suspended on March 31, and an investigation has concluded that the firm took appropriate action. “On April 11th, after her suspension on March 31, Ankiti Bose brought to the board’s attention, for the first time, certain harassment-related issues pertaining to past time periods, which did not include any harassment complaints against investors or their nominees,” it said.
The company said that a top consultant was appointed to look into Bose’s complaints. “The investigation has concluded that the company took appropriate action and followed due process to address these complaints that were brought to their notice, contrary to media reports that have suggested that the suspension and investigation into Ankiti Bose were aimed at suppressing the said harassment claims, the statement said.
Zilingo CEO Ankiti Bose has been in the limelight following a feud with the company’s board and major investor Sequoia Capital India afters allegations of potential irregularities in accounts surfaced. She has however denied such claims.
Zilingo – an online fashion company that supplies technology to apparel merchants and factories — was founded in 2015 by Ankiti Bose and chief technology officer Dhruv Kapoor. However, years after the lauch, the company quickly became a target of investigations after auditors raised questions on its financial practices.
According to reports, Zilingo co founder Ankiti Bose has lawyered up and disputed of wrongdoing. She further contended that her suspension was due in part to her complaints about harassment. “The company is deeply pained and disappointed to see the manner in which the board, investors and employees have been constantly attacked through ostensibly leaked and fake information, along with what unfortunately appears to be paid and defamatory social media campaigns throughout the investigation period. This has caused irreparable damage to the Company, the board, employees and investors,” Zilingo said.
Following the recall of loans by debtholders, an independent financial advisor was appointed by the company which is in the midst of assessing options for the business. More information will be provided in due course, Zilingo added.
(With agency inputs)
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