Revenue Manipulation Casts a Shadow Over Medikabazaar’s Growth

• Medikabazaar, a B2B marketplace for medical supplies, is under scrutiny after a PwC forensic audit revealed discrepancies in revenue recognition. Co-founder Vivek Tiwari is expected to step down as CEO but will remain on the board.
• The company, valued at $650 million, has raised $194 million to date. Its major investors include Creaegis, Lighthouse India, HealthQuad, Rebright, and Ackerman.
• The board, led by Creaegis, found that Medikabazaar may have inflated its 2023-24 revenue by 60-65%. This prompted an external audit by PwC, which is ongoing.
• Allegations suggest that Medikabazaar overstated revenues from its largest business segment, medical equipment sales, primarily through a partnership with China’s United Imaging.
• If proven, the revenue manipulation could trigger clauses in the shareholder agreement, potentially costing Tiwari and co-founder Ketan Malkan a portion of their equity stakes.

Source: The Arc