Medikabazaar Removes Former CEO Vivek Tiwari Over Fraud Allegations

Mumbai-based medical supply chain startup Medikabazaar has officially removed its co-founder and former CEO Vivek Tiwari from the company's board due to serious allegations of financial misconduct. 

This action follows an internal investigation that uncovered instances of financial mismanagement and fraud.

A resolution passed by the company's shareholders stated that Tiwari was involved in activities causing significant harm to Medikabazaar. 

The investigation, conducted by Uniqus India, Alvarez & Marsal and M/s Rashmikant & Partners, concluded that Tiwari breached his fiduciary duties and was guilty of gross negligence and misappropriation. 

Read also- Deeptech Startup Planck Raises Pre-Seed Funding

An earlier audit by PwC had already identified inconsistencies in revenue recognition and other governance issues leading to Tiwari stepping down from his CEO role last year. 

In addition to these developments, Medikabazaar faces an indemnity claim of Rs 278.7 crore from its Series C investors, who allege financial misstatements in previous reporting periods. 

In response to the leadership changes, Medikabazaar appointed Dinesh Lodha as the new Group CEO in August 2024. Lodha brings over two decades of experience in the MedTech industry, having previously held leadership roles at Healthium Medtech and other healthcare companies. 

Medikabazaar, valued at approximately $650 million, has raised over $190 million in funding from investors such as Creaegis, Lighthouse India, and HealthQuad. 

Medikabazaar offers a B2B platform to procure medical supplies and equipment for hospitals and clinics.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges, and achieving success.