Vivek Tiwari, founder and former CEO of Medikabazaar, has filed a petition with the Delhi High Court challenging his removal.

He seeks to block changes to the company’s board or promoter rights until an ongoing arbitration is resolved.

The court will hear the case later this month.

Tiwari was removed following a whistleblower complaint filed in December 2023. The board accused him of financial misconduct, including governance failures and fund misuse.

An investigation by Uniqus India, Alvarez & Marsal, and Rashmikant & Partners found revenue overstatement of over 60% in FY 2023.

🔗 Source: Inc42

🧠 Food for thought

1️⃣ Healthcare supply chain governance becomes critical as sector digitizes

Medikabazaar’s boardroom conflict highlights the growing importance of governance in digital healthcare procurement platforms that handle critical medical supplies.

The company raised $20.8 million across multiple rounds, including a $15.8 million Series B in 2019 and a $5 million Series A in 2018, attracting investment from healthcare-focused funds like HealthQuad12.

This governance crisis emerges amid increasing cybersecurity concerns in healthcare procurement systems globally, with examples like the NHS supply chain facing multiple attacks that caused significant disruptions in medical product shipping3.

The healthcare procurement sector is particularly vulnerable to mismanagement due to complex supply chains with multiple stakeholders, regulatory requirements, and the critical nature of the products involved.

During the pandemic, INTERPOL seized millions of fake medical items, highlighting how poor management and regulatory failures can create significant corruption risks in healthcare supply chains4.

2️⃣ B2B healthcare platforms face unique operational challenges beyond standard startups

While Medikabazaar’s stated mission was cutting hospital procurement costs by 15-20%, the company operated in a sector facing multiple systemic challenges that amplify operational complexity2.

Healthcare supply chains continue to struggle with product shortages and logistical complexities that directly impact patient care, requiring specialized management approaches beyond traditional e-commerce models5.

Recent Medikabazaar developments