World-class firms need world-class governance, says Sequoia India MD

Anandan also reiterated that if one has decided to do fraud then even the Big four audit firms can also not do much

Rajan Anandan, vice-president of Google (South East Asia & India), addresses the fourth edition of Google for India 2018 event
Rajan Anandan
Shivani Shinde Mumbai
2 min read Last Updated : Feb 21 2023 | 11:36 PM IST
VC firms, in general, are focused on creating world-class companies but to be a world-class company, one needs to have world-class governance, said Rajan Anandan, MD of Sequoia Capital India. 

“What we are seeing in India in the past 12-15 months are a few situations of wilful frauds. When you see wilful fraud, you have to take action to investigate it. ... Start-ups from a very early stage in their journey should be aware of the governance issues,” said Anandan at the Indian Venture and Alternate Capital Association (IVCA) Conclave 2023 in Mumbai.

His remarks come at a time when a few firms in which Sequoia has invested are embroiled in governance issues. The latest case is of GoMechanic, where the founders confessed to wrongdoings. Earlier, governance issues cropped up at Singapore-based Zilingo, BharatPe, and Trell.

Anandan also reiterated that if one has decided to do fraud then even the Big four audit firms can also not do much.

"When you have serious governance lapses, who are investigated and concluded to be frauds, those are super serious. Willful fraudsters will have their ways to hide things from Big 4 auditors. It’s very difficult to catch them. You need to double down on diligence,” he said. 

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Rajan Anandancorporate governanceSequoia Capital

Next Story