Medikabazaar CEO denies all allegations after ousted from Co for fraudulent activities
The statement comes after a whistleblower complaint accused senior management of inflating the company’s top-line numbers and reports of manufactured audit trails.
Vivek Tiwari, Co-founder and CEO of Medikabazaar, has denied all allegations raised against him after a whistleblower complaint triggered an investigation into the company’s finances that showed fictitious revenue cycles and fabricated customer accounts, among others.
The co-founder's statement comes a day after the B2B medical supply platform ousted Tiwari from the company amidst piling allegations against him.
Medikabazaar was once valued at $700 million, and in 2023, it had disclosed its plans to raise $200 million in equity.
“In response to recent reports concerning 'Medikabazaar', I categorically deny all allegations of fraudulent conduct or intentional misrepresentation during my tenure as CEO. The claims suggesting my involvement in any alleged inflation of revenue figures are misleading, and do not reflect the reality of the situation,” Tiwari said in a statement sent to YourStory.
Additionally, Series C investors in the company filed a Rs 279 crore indemnity claim against after reports of the fraudulent financial reporting tied to earlier funding rounds surfaced.
The CapTable had reported on the events that had unfolded in the company after accessing a letter that was sent by a group of investors, including Arun Venkatachalam, Sunil Kalra, representatives of Rebright Partners, HealthQuad, KOIS Holding, Ackerman & Van Haaren, and others.
“While the current narrative is unfortunate and deeply damaging, I remain confident in the truth. In the coming days, true facts will emerge, providing clarity and reaffirming my personal reputation and integrity. Any attempt, intentional or otherwise, to malign my character and reputation will be addressed through appropriate legal channels, as and when necessary,” Tiwari added.
The unfolding of the events at Medikabazaar comes days after a SEBI probe into Gensol Engineering uncovered a web of fraudulent transactions and misutilised funds at the company, turning a spotlight on a rising discourse on corporate governance.
Edited by Suman Singh