Vivek Tiwari, co-founder and former CEO of Medikabazaar, has been officially removed from the company’s board following an internal probe that found him responsible for serious misconduct and financial wrongdoing that allegedly caused significant damage to the business.
A group of key investors—Rebright Partners, HealthQuad, Ackermans & van Haaren, and Creaegis—collectively holding 47% equity, backed a special resolution to oust Tiwari, according to a regulatory filing. The document accuses him of “malicious and fraudulent activities,” including financial mismanagement and fraud, which it claims have put the company in jeopardy.
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The investigation, conducted by advisory firms Uniqus India, Alvarez & Marsal, and the legal team at Rashmikant & Partners, pointed to major breaches of trust. Tiwari was found to have been negligent in his duties, misrepresented company finances, and diverted funds. Their conclusions were consistent with an earlier audit by PwC in July 2024, which exposed glaring issues like inflated sales figures—where over 60% of reported gross merchandise value didn’t reflect real transactions—and a string of governance red flags.
Storm Clouds Over a Once-Shining Startup
Medikabazaar, launched in 2015 as a B2B platform for medical supplies, has raised close to $190 million to date. It secured $65 million in Series D funding in 2022, led by Lighthouse India, giving the company a valuation north of $500 million.
But cracks had already begun to show. In FY2023, the company reported revenue of Rs 908 crore but ended the year with a loss of Rs 304 crore. Several Series C investors have since filed a claim for Rs 278.7 crore, citing misleading financial disclosures. The company has yet to share its financials for FY2024.
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Although Tiwari resigned from his role as CEO in July 2024, he continued to hold a board seat until his removal this week. In the wake of his departure, Medikabazaar appointed healthcare industry veteran Dinesh Lodha as Group CEO. At the time of his appointment, Lodha said the company stood at a critical juncture and expressed optimism about expanding its partnerships across the healthcare ecosystem.
