Zilingo co-founders make surprise buyout offer for start-up
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Zilingo co-founders Dhruv Kapoor (left) and Ankiti Bose. Mr Kapoor has secured commitments from a small group of new investors.
PHOTO: DATA REPUBLIC, FELINE LIM
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SINGAPORE (BLOOMBERG) - Zilingo co-founders made a last-ditch offer to buy the embattled fashion e-commerce platform as the board debates its future, according to people familiar with the matter.
Co-founder Dhruv Kapoor on Sunday (June 19) proposed a management buyout to the Singapore-based company's board, according to the people, who asked not to be named as the matter is private.
He has secured commitments from a small group of new investors including a United States private equity firm, the people said.
Under the preliminary proposal, the investor group will inject US$8 million (S$11.2 million) in new equity in a newly incorporated entity in tranches, while the remaining assets and the old corporate entity will be liquidated in due course, according to Mr Kapoor’s e-mail sent to investors and seen by Bloomberg News.
All outstanding debt owed to creditor Zorro Assets will be frozen for three years, the e-mail said.
The move comes as Zilingo’s board is scheduled to meet on Monday to discuss the future of the company, according to people with knowledge of the matter.
Allegations of financial irregularities in March prompted an investigation into the company, valued at US$970 million in 2019, and led to the dismissal of co-founder Ankiti Bose as chief executive in May.
Her ouster plunged the once high-flying start-up into crisis and sent shockwaves through Singapore’s technology industry.
