Zilingo co-founders make surprise buyout offer for startup

The co-founders of Zilingo Pte made a final offer to buy the controversial fashion e-commerce platform as the board debates its future, according to people familiar with the matter.

Co-founder Dhurv Kapoor proposed a management buyout to the Singapore-based company’s board of directors on Sunday, according to people, who asked not to be named because the business is private. He has received pledges from a small group of new investors, including a US private equity firm, the people said.

Under the preliminary proposal, the investor group will inject $8 million in new equity capital into a newly formed entity in tranches, while the remaining assets and the old corporate entity will be liquidated in due course, according to Kapoor’s email sent to investors and being seen by Bloomberg News. All outstanding debts to creditor Zorro Assets Ltd. will be frozen for three years, according to email.

The move comes as Zilingo’s board meets Monday to discuss the company’s future, according to those in the know. Allegations of financial irregularities in March sparked an investigation into the company, which was valued at $970 million in 2019, and led to the resignation of co-founder Ankiti Bose as chief executive officer in May.

This story was published from a news agency feed with no text changes.

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