After Temasek Backing Probe, Zilingo Says Working Closely With Major Investors

 After Singapore state investment firm Temasek backed an investigation into Zilingo's accounting practices, the fashion technology startup said it is working closely with its major investors and an independent firm for the probe.

"The major investors of the company authorized the board to put the CEO, Ankiti Bose, on suspension pending an investigation of the matters raised," Zilingo Pte said in a statement.

However, it did not elaborate on the investigation.

"The major investors have hired an independent firm to investigate the matter, and the company is working closely with the major investors and the independent firm for the investigation," it said.

Proper due process has been and will be followed, it insisted.

In a strongly-worded statement, Temasek had on Tuesday stated, "We expect our portfolio companies to abide by the sound corporate governance and codes of conduct and ethics. We are, therefore, in support of the board's investigation into the complaint as a part of good governance to safeguard the interests of the company."

This is the second investment firm that has spoken in the favour of a strong governance framework, days after Sequoia India, also an investor in Zilingo, spoke on the subject.

The statement comes after the board of Zilingo put its co-founder Ankiti Bose on suspension on March 31 pending an investigation.

Sequoia Capital India's Shailendra Singh to has stepped down from the board of Zilingo following questioning over the accounting practices of the fashion technology startup.

"Given the current circumstances at Zilingo, the fund thought it appropriate to change its nominee on the board to have a representation with relevant experience that the company requires at this juncture," a Sequoia India spokesperson said on Shailendra Singh resigning from the board.

Zilingo, a platform for fashion merchants backed by Singaporean state-owned investor Temasek Holdings, was co-founded in 2015 by CEO Ankiti Bose alongside Dhruv Kapoor, its chief technology and chief product officer.

Singh resigned as a director a few days back after the departure of Temasek Holding Pet's Xu Wei Yang and Burda Principal Investments Ltd's Albert Shyy, sources said.

The investigation reportedly is into the way that Zilingo had accounted for transactions and revenue across a platform spanning thousands of small merchants.

Besides Temasek and venture capital firm Sequoia Capital, Zilingo also counts Burda Principal as well as Singapore's Economic Development Board's investment arm EDBI among its investors. It was not immediately clear how much shareholding each investor has in the company.