Miguel Cordon · · 1 min readSequoia Capital India eyes more financial audits for portfolio firms
Sequoia Capital India is eyeing audits for some of its investments in South Asia, sparked by recent financial misreportings by portfolio firms Zilingo and GoMechanic, Bloomberg reported.
The development follows Zilingo’s board reportedly appointing EY Corporate Services as its provisional liquidator amid a probe into the company’s financials. The investigation, which started last year, came after the fashion ecommerce firm supposedly approached investors for a potential US$200 million round.
Meanwhile, GoMechanic is facing an audit by a third-party firm, which was launched by its major investors – Tiger Global, Sequoia Capital India, and Chiratae Ventures. The group of investors said they are “deeply distressed” that the car-servicing platform tweaked its financials, which included inflating revenue.
According to Bloomberg, Sequoia Capital India will join hands with EY for its planned audits and will now have a stricter selection process to decide who gets to sit on its portfolio firms’ boards.
See also: Zilingo Philippines lays off entire team (Updated)
Editing by Lorenzo Kyle Subido
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