Sequoia Capital Responds, As Its Portfolio Firms Face Financial Fraud Allegations The response comes at the time when some of its portfolio startups such as BharatPe, Trell and Zillingo have come under investigation for financial irregularities

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

Sequoia Capital broke the silence over the controversy, as some of its portfolio companies such as BharatPe, Trell and Zillingo are caught in corporate governance issues and potential fraudulent practices. The American venture capital firm said in a blog, "The allegations are deeply disturbing."

In the blog post, published on 17 April, Sequoia Capital said, "We will respond strongly when we encounter wilful misconduct or fraud. When whistleblowers call us to report on issues, we always take them seriously."

The company responded at the time when some of its portfolio start-ups have come under the investigation for financial irregularities. Ashneer Grover, co-founder of BharatPe, has left the company wherein his wife Madhuri Jain and relatives allegedly misused company funds. Live commerce firm Trell's founders are also facing accusations for inappropriate usage of startup's fund. Singapore-based e-commerce company Zillingo, has suspended its chief executive Ankiti Bose over accounting issues. Later, Sequoia Capital India's head, Shailendra Singh, also left Zilingo board.

"We will take proactive steps including, governance training for founders and senior management, implementation of whistleblower policies, more independent board representation and asking for more disclosure and rigorous adoption of internal audits and controls," Sequoia Capital said in a statement.

"Good governance begins in the founders' heads. No amount of oversight by investors, boards, audit committees or auditors can ensure company is well governed if the founders are not committed to their objective," Sanjeev Bikhchandani, InfoEdge founder, reacted to Sequoia Capital's blog in a tweet.

Sequoia Capital is a venture capital firm that invests in consumer, technology and healthcare startups. The company is now, reportedly, worth over $100 billion.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Starting a Business

I've Interviewed Over 100 Entrepreneurs Who Started Businesses Worth $1 Million to $1 Billion or More. Here's Some of Their Best Advice.

From Richard Branson to Martha Stewart and beyond, these founders reveal what it takes to build and lead successful companies.

Starting a Business

Smart Business Owners Start at the End — How to Achieve Entrepreneurial Success by Taking a 'Backward Approach'

This article advises entrepreneurs to take a "backward approach" to success by first articulating their end goal, then developing milestones, and finally creating a brand, partnerships and a team to execute.

Personal Finance

A $60 Trillion Financial Dilemma is Coming — How to Keep Generational Wealth from Disappearing

If you're a successful entrepreneur looking to create generational wealth, consider investing in private capital markets rather than chasing the next hot dot.

Business News

MrBeast's Holding Company Could Be Worth $5 Billion After Its Latest Fundraising Round

The YouTube creator is reportedly in talks to raise funds for a holding company for his various businesses, including his snack brand, Lunchly.