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Liquidation process for B2B fashion tech start-up Zilingo begins, claims report

Liquidation process for B2B fashion tech start-up Zilingo begins, claims report

The Singapore-based company’s board appointed EY Corporate Services Pte as provisional liquidator, sources told Bloomberg.

The company was started in 2015 by Ankiti Bose and Dhruv Kapoor. Its valuation soared to $1 billion in 2019 with marquee investors backing it including the likes of Sequoia Capital, Temasek Holdings Pte, and others. The company was started in 2015 by Ankiti Bose and Dhruv Kapoor. Its valuation soared to $1 billion in 2019 with marquee investors backing it including the likes of Sequoia Capital, Temasek Holdings Pte, and others.

B2B fashion start-up, Zilingo, is all set to enter liquidation, sources told Bloomberg. The Singapore-based company’s board appointed EY Corporate Services Pte as provisional liquidator, people familiar with the matter said. The board informed major shareholders and creditors of its decision, they said.
 
Zilingo refused to comment on the story. 
 
The liquidation comes after Zilingo creditors Varde Partners and Indies Capital Partners found a buyer for some of its assets, the people said. Those assets have been transferred to the new owner for an undisclosed purchase price, the sources told Bloomberg.
 
This development spells the beginning of the end of a start-up which became a prominent name in the Southeast Asian start-up circles.
 
The company was started in 2015 by Ankiti Bose and Dhruv Kapoor. Its valuation soared to $1 billion in 2019 with marquee investors backing it including the likes of Sequoia Capital, Temasek Holdings Pte, and others.
 
Troubles started brewing for the business when discrepancies were observed during a due diligence process for a new funding round, thanks to a whistle-blower who raised the alarm on financial wrongdoings in which Bose was allegedly involved.
 
The findings of the auditing process changed the gears of the company. 
 
In May last year, Zilingo fired Bose from the position of CEO over complaints of serious financial irregularities. In the statement, the company announced its decision and said, “Following an investigation led by an independent forensics firm that was commissioned to look into complaints of serious financial irregularities, the company has decided to terminate Ankiti Bose’s employment with cause, and reserves the right to pursue appropriate legal action."
 
Amidst this, Bose even sent a legal notice to the company's board levelling charges of harassment and abuse. The legal notice also revealed that Kapoor, and Zilingo’s COO, Aadi Vaidya, had not helped her when she first informed them of the harassment that she was facing. 
 
In June, Kapoor and Bose even made a pitch to the board to buyout the company but that also didn’t work out. 

Published on: Jan 20, 2023, 6:51 PM IST
Posted by: Bhavya Kaushal, Jan 20, 2023, 6:41 PM IST