Bizongo under scanner after auditors raise fraud concerns

B2B marketplace and financing platform Bizongo has initiated a fresh investigation into a suspected financial fraud in FY24, following an intimation from its auditors earlier this year, a company spokesperson told FE.

- URVI MALVANIA

The spokesperson stated that the probe comes months after the company had already conducted an internal investigation in April 2024, upon detecting discrepancies in its financial records.

"This investigation related to a mid-level former employee in the finance team," the spokesperson said, adding, "The flagged issue is linked to a now-discontinued vertical where a former employee defrauded the company of ₹21 crore."

The discontinued vertical dealt with supply chain financing. Bizongo no longer lends directly; its financing vertical, now rebranded as BizongoFin, serves solely as a platform facilitating connections between lenders and borrowers.

The board initiated the new investigation in January 2025, after the company's auditors flagged the matter, in order to ensure all bases were covered in the original investigation.