Zilingo's story a reminder of differing standards in the private markets
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Claudia Chong
ANKITI Bose’s startup was on the rise. Zilingo, a supplier of e-commerce technology, had secured financing from big name investors such as Temasek and Sequoia. It was just about to land a round of funding that would make it a unicorn. Then, everything fell apart.
Bose was suspended from her position as chief executive, joining a long list of startup founders who have fallen from grace. Zilingo’s investors are also facing public scrutiny. Bose has vowed to fight the suspension, denied wrongdoing, and accused her backers of knowing about the company’s financials all along.
The story of Zilingo is hardly unique. Startups frequently disappoint. Investors - the angel investors, venture capitalists and private equity funds - all know the high stakes in this space. The large risk is justified only by the associated outsized reward.
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