Indian startup Medikabazaar removes former CEO Vivek Tiwari from the board over fraud allegations

B2B medical‑supplies marketplace Medikabazaar has formally expelled co‑founder and former chief executive Vivek Tiwari from its board after an internal investigation concluded he presided over "malicious and fraudulent activities" that harmed the company.

A special resolution backed by investors holding 47% of equity—Rebright Partners, HealthQuad, Ackermans & van Haaren and Creaegis—removed Tiwari as director, according to a filing with the Registrar of Companies. 

The document states: "Mr. Vivek Tiwari is involved in malicious and fraudulent activities, including those of financial mismanagement and financial fraud, which have caused irreparable harm and damage, and are alarming to the well‑being of the company."

Investigators cite negligence and misappropriation

Advisory firms Uniqus India, Alvarez & Marsal and law office Rashmikant & Partners concluded that Tiwari had breached his fiduciary duties through gross negligence, misstatements and misappropriation of funds.

Their findings echoed a July 2024 PwC audit that flagged inflated revenue recognition—at least 60% of gross merchandise value was wrongly booked as sales—and multiple governance lapses.

Financial cloud darkens popular startup

Founded in 2015, Medikabazaar has raised nearly $190 million, including a $65 million Series D round led by Lighthouse India in 2022, which valued the startup at over $500 million. 

In fiscal 2023, the firm reported revenue of Rs 908 crore but posted a loss of Rs 304 crore; Series C investors have since filed an indemnity claim of Rs 278.7 crore, alleging earlier misreporting. The startup has not yet released its FY 2024 numbers.

New leadership seeks a clean slate

Tiwari stepped down as CEO last July but kept his board seat until Wednesday's vote. In August 2024, Medikabazaar brought in healthcare veteran Dinesh Lodha as Group Chief Executive. 

"The company is at an inflection point, and I see substantial opportunities across the verticals we operate in," Lodha said at the time, promising deeper ties with hospitals worldwide.