Singapore's Temasek backs probe into Zilingo's accounting practices

Singapore state investment firm Temasek has backed an investigation into fashion technology startup Zilingo Pte's accounting practices saying it supports the company board's move.

In a strongly-worded statement, Temasek said, "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."

However, it did not elaborate on the investigation.

This is the second investment firm that has spoken in the favour of 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 founder Ankiti Bose on suspension on March 31 pending an investigation.

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

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, the 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 share each investor holds in the company.