Medikabazaar Removes Director Due to Malicious Conduct
Medikabazaar, a B2B medical supply chain platform, has dismissed its director and former CEO, Vivek Tiwari, following serious allegations of fraudulent activities. Shareholders have officially sanctioned Tiwari’s removal from the board due to claims of misconduct, as revealed in a regulatory notice accessed from the Registrar of Companies (RoC).
The filing highlighted that “Mr. Vivek Tiwari is implicated in malicious and fraudulent activities, encompassing financial mismanagement and fraud, which have inflicted irreparable damage and pose significant risks to the company’s well-being.”
An investigation by Uniqus India, Alvarez & Marsal, and M/s Rashmikant & Partners determined that Tiwari had violated his fiduciary responsibilities, exhibiting gross negligence, misappropriation, and misstatements, as stated in the records.
PWC auditors identified discrepancies in revenue recognition and various governance issues, which contributed to Vivek Tiwari’s removal as Chief Executive Officer of Medikabazaar last year.
Medikabazaar has successfully raised over $190 million in total funding through various investment rounds. This includes a significant $65 million Series D funding round in 2022, spearheaded by Lighthouse India, which valued Medikabazaar at $700 million. According to the startup data intelligence platform sources, Craegis holds the largest external share in the business, followed closely by Rebright Partners and HealthQuad. Co-founders Vivek Tiwari and Ketan Malkan retain ownership of 12.36% and 12.35% respectively.
As of now, Medikabazaar has yet to submit its annual report for the fiscal year ending March 2024. In FY23, the company reported revenues amounting to Rs 908 crore, with a net loss of Rs 304 crore. Moreover, its Series C investors have filed an indemnity claim of Rs 278.7 crore, citing misreporting in earlier financial periods.
