Zilingo reportedly suspends CEO amid probe into financials

Zilingo, a Singapore-based fashion ecommerce major, has suspended its CEO, Ankiti Bose, after the company’s fundraising plans drew questions into the firm’s accounting practices, Bloomberg reported, citing sources briefed on the matter.

The company is said to have been trying to raise up to US$200 million from investors with the help of Goldman Sachs Group.

Now, potential investors have reportedly launched an investigation into Zilingo’s financial practices, as the company’s auditor has questioned the firm’s accounting records. The probe centers around the business’ transactions and revenue across its platform, which includes thousands of small merchants.

Bose has disputed alleged malpractice and said her suspension comes amid complaints she filed about harassment, two people familiar with the matter said. Through her lawyer, the co-founder has questioned the directors’ right to relieve her of her position.

“We are of the view that our client’s suspension has been procured by invalid and defective means; that the investigation commenced into her is unfair and lacking in due process, and that she has been suspended without proper and reasonable cause,” her attorney wrote.

Also, two Zilingo directors – Temasek’s director of investment Xu Wei Yang and Burda Principal Investments’ managing director for Asia Albert Shyy – have left the company’s board, according to regulatory filings seen by Bloomberg.

See Also: Zilingo grew big, lost big from 2018 to 2019