A whistleblower complaint in December 2023 triggered a crisis at Medikabazaar, a B2B medical supply platform in India. The complaint alleged widespread financial fraud, including inflated revenues, unverified inventory, and false transactions.
Forensic audits have validated these allegations. PwC, the company's auditor, resigned and filed a fraud report with the Ministry of Corporate Affairs (MCA).
Series C investors, including Creagis, CDC Group, HealthQuad, and Ackermans & van Haaren, initiated a Rs 279 crore indemnity claim due to alleged misstatements during fundraising.
The crisis has resulted in a significant leadership change at Medikabazaar. The company is attempting a turnaround, but faces considerable financial pressure and ongoing forensic clean-up efforts. The events raise questions about the company's future and the oversight of investments in the Indian healthtech sector.
Despite publicly announcing plans to raise $200 million in 2024, Medikabazaar was grappling with internal issues. The company, valued at $700 million, served 20,000 pincodes through its platform, Vizi, offering procurement, financing, and logistics services.