Singapore-based fashion technology startup Zilingo has fired its CEO Ankiti Bose after an independent forensic audit following complaints of serious financial irregularities. The Sequoia Capital India-backed startup had placed Bose under suspension on March 31, 2022.

The Indian origin founder and CEO has denied wrongdoing and hit back with a statement on the social media pointing out that her employment was terminated on the grounds of “insubordination”, deepening the crisis in the startup and raising questions among observers about corporate governance in the high flying emerging companies.

“Following an investigation led by an independent forensic firm that was commissioned to look into complaints of serious financial irregularities, the company has decided to terminate Ankiti Bose’s employment with cause, and reserves the right to pursue appropriate legal action,” the company said.

The company said that on April 11, after Bose’s suspension (on March 31), she had brought to the board’s attention certain harassment-related issues in the past, which did not include any harassment complaints against investors or their nominees. A consulting firm was appointed to look into the claims of harassment brought to the board’s notice.

“The investigation has concluded that the company took appropriate action and followed due process to address these complaints,” the statement from the company to The Telegraph said.

Bose has been locked in a feud with the company's board and major Zilingo investor Sequoia Capital India amid allegations of potential accounting irregularities. The suspension of the CEO comes at a time when the company had been reportedly looking to raise USD 150-200 million at a valuation of over USD 1 billion, catapulting the firm to the unicorn club. Bose has termed the company's action as a "witch hunt" and said she will pursue legal rights.

“I have been suspended for the last 51 days based on an anonymous whistle-blower complaint, and today I am informed that my employment has been terminated inter alia on grounds of insubordination," she said in a statement on social media adding that she has not seen any investigation reports and has not been given time to produce documents requested by the investigators.

Earlier this month the creditors of Zilingo had decided to recall all of their loan prompting the company's board to appoint an independent financial adviser.

"Following the recall of loans by debtholders, an independent financial advisor was appointed by the company which is in the midst of assessing options for the business. More information will be provided in due course," Zilingo said in the statement.

Zilingo was founded in 2015 by Bose and chief technology officer Dhruv Kapoor as a Southeast Asia focussed e-commerce firm with a focus on fashion and lifestyle.

Amid the ongoing turmoil in Zilingo, marking a rare instance Sequoia Capital India came out with a statement on corporate governance in April, raising a broader question on the validity of the performance metrics of the fast-growing startups. "Recently some portfolio founders have been under investigation for potential fraudulent practices or poor governance. These allegations are deeply disturbing. We have always strongly encouraged founders to play the long game. We focus on the enduring, and discourage focussing on vanity metrics. Despite that we find some counter-examples of what we espouse. It makes us reflect on what we could have done, along with other investors, who have partnered in these companies, to prevent such situations," Sequoia said in the statement.