Singapore-Based Zilingo Likely To Replace Suspended CEO Ankiti Bose: Report

Ankiti Bose, whose current suspension runs through May 5, has pressed the board to clarify her status because she is concerned the company is growing directionless

Ankiti Bose has denied any wrongdoing and has hired an attorney to fight back against what they have described as a “witch hunt". Image: Getty

New Delhi: In yet another boardroom battle, the board of Singapore-based start-up Zilingo Pte, which recently suspended Ankiti Bose from her post as chief executive officer, is considering to replace her for good amid an ongoing probe regarding firm’s accounting practice.

Quoting sources familiar with the matter, Bloomberg reported that the directors have been discussing regularly to consider the future of Bose and Zilingo. However, it has not been decided by the board that who will replace Bose. In the board meeting, one option discussed is to appoint an interim leadership, including senior executives and investors, the sources said.

Bose (30), whose current suspension runs through May 5, has pressed the board to clarify her status because she is concerned the company is growing directionless, said the sources.

Kroll, a private investigative agency, is conducting a probe of Zilingo’s bookkeeping and is aiming to finish soon.

The suspended CEO has denied any wrongdoing and has hired an attorney to fight back against what they have described as a “witch hunt.” Sources said that Bose has grown frustrated with the conflicts and has begun to realise she is unlikely to return as CEO.

Bose, in her statement to Bloomberg, said she is “fully committed to cooperating with the board in the investigations” and that “one thing we all agree on is that whenever there are credible complaints, as board members we are obligated to look into them and do what is best for the company.”

The start-up, which supplies technology to apparel merchants and factories, had been trying to raise $150 million to $200 million with help from Goldman Sachs when investors began to question its finances as part of the due diligence process, said the sources. The talks, which could have boosted Zilingo’s valuation to more than $1 billion, stalled, they said.

Zilingo, backed by Sequoia Capital India and Temasek Holdings, had been one of the highest-profile start-ups to emerge from Singapore until revelations about its accounting probe and the CEO’s suspension emerged this month.

Temasek, also based in Singapore and backed by its government, has expressed concern the meltdown is tainting its reputation and urged the firm to fix the situation. “We expect our portfolio companies to abide by sound corporate governance and codes of conduct and ethics. We are therefore supportive of the board’s investigation into the complaint as part of good governance, to safeguard the interests of the company,” Temasek said in a statement.

The battle between Bose and the board has escalated in recent days as executives and directors sort through who is responsible for the start-up’s financial state, the people said. Bose has argued that she is getting blamed for decisions and practices that were well known by senior managers and directors.

She has made the case that Sequoia and its Managing Director Shailendra Singh were intimately involved in Zilingo’s operations. Bose has said that she and co-founder Dhruv Kapoor were young founders who leaned on the expertise of investors like Sequoia, which owns about 25 per cent of the start-up and is considered one of the top venture firms in the world.