Whistle-blower, Missing Millions and Angry Investors in Medikabazaar: The CapTable
Moneylife Digital Team 17 April 2025
Updated at 4.15pm on 21 April 2025 to include response from Vivek Tiwari, co-founder and CEO of Medikabazaar
 
Medikabazaar, the business-to-business (B2B) medical supply platform, once hailed as a future unicorn in India’s healthtech space, has hurtled from crisis to crisis since a whistle-blower complaint in December 2023 accused the then-senior management of fraud. In the 15 months since, the allegations have been validated by forensic audits, its statutory auditor has resigned, and the company has undergone a significant leadership overhaul, says a report from The CapTable.
 
According to the report, while Medikabazaar attempts a turnaround, its series C investors—including Creagis, CDC Group (now BII), HealthQuad, and Ackermans & van Haaren—have activated a Rs279 crore indemnity claim, demanding accountability for misstatements made during fundraising.
 
"This follows a special notice issued in January by a group of shareholders representing 47.1% of the equity, citing alleged fraud and breach of fiduciary duty. The letter, sourced by The CapTable, was sent by a group of investors, including Arun Venkatachalam, Sunil Kalra, representatives of Rebright Partners, HealthQuad, KOIS Holding, Ackerman & Van Haaren, and others," it added.  
 
In September 2023, when Medikabazaar disclosed to the media its plans to raise US$200mn (million) in equity the following year, there was little sign of the storm brewing inside the company. "Everything was seemingly hunky-dory." 
 
Medikabazaar, started in 2015, was serving 20,000 pincodes through its digital procurement platform, Vizi, and had a presence in financing, asset lifecycle management, logistics and procurement services. 
 
 
UPDATE:
In an email statement, Vivek Tiwari, co-founder and chief executive officer (CEO) of Medikabazaar says, "In response to recent reports concerning 'Medikabazaar', I categorically deny all allegations of fraudulent conduct or intentional misrepresentation during my tenure as CEO. The claims suggesting my involvement in any alleged inflation of revenue figures are misleading, and do not reflect the reality of the situation."
 
"While the current narrative is unfortunate and deeply damaging, I remain confident in the truth. In the coming days, true facts will emerge, providing clarity and reaffirming my personal reputation and integrity. Any attempt, intentional or otherwise, to malign my character and reputation will be addressed through appropriate legal channels, as and when necessary," he says.
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