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Medikabazaar CEO Vivek Tiwari Steps Down Amid Governance Issues

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Preeti Bali / 6:57 am / July 11, 2024

Vivek Tiwari, the founder and CEO of Mumbai-based B2B medical supplies startup Medikabazaar, is stepping down following an audit by UK-based accounting firm PwC, which uncovered discrepancies in revenue recognition and several governance problems.

PwC auditors reportedly found that the gross merchandise value had been overstated by at least 60%. The company’s board is in the process of appointing a new CEO as Tiwari transitions to a non-operational role on the board. Co-founder Ketan Malkanal, who previously served as CFO, left that position last year. Raman Chawla, a finance expert with experience at Campus Activewear and Reckitt Benckiser, has since been appointed as the new CFO.

A company spokesperson told ET, “The review identified weaknesses and deficiencies in internal controls and processes. Following the review, the company has enhanced its internal control mechanisms and strengthened the executive team with senior additions. The board continues to collaborate with management to implement any further changes needed for a high-growth business like Medikabazaar.”

 

Investor Backing and Financial Milestones

To date, Medikabazaar has secured approximately $194 million from investors such as Lighthouse Funds, Creaegis, CDC Group, Kois Invest, Rebright Partners, MSIVC, The Catalytic Impact Foundation (CIF), and Ackermans & van Haaren. In April 2022, the startup was valued at $650 million following a $65 million funding round.

 

Recent Executive Appointments

In April 2024, Ravishankar Gopalakrishnan was appointed as the chief operating officer (COO) of Medikabazaar. According to information from the corporate affairs ministry, both Gopalakrishnan and CFO Raman Chawla were added to the company’s board of directors in May this year. Gopalakrishnan previously served as the acting CEO at Jet Airways and held a senior executive role at GE Healthcare. Other board members include Pinak Shrikande from HealthQuad, Nitish Bandi from Creaegis, and Jens Van Nieuwenborgh from Ackermans.

 

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