Zilingo’s co-founders made a last-ditch offer to acquire the troubled fashion e-commerce platform. The company’s board is due to meet to debate its future.
Zilingo Pte co-founder Dhurv Kapoor recommended a management buyout to the Singapore-based company’s board on Sunday. They asked not to be identified because the subject is confidential. According to the persons, he has obtained commitments from a small group of new investors, including a US private equity firm.
According to an email provided to investors by Kapoor, the investment group would inject $8 million in new equity in a newly established corporation in tranches, while the remaining assets and the previous corporate organization will be liquidated in due course.
According to an email, all outstanding debt owing to creditor Zorro Assets Ltd. would be frozen for three years. According to persons familiar with the situation, Zilingo’s board of directors is due to meet on June 20 to debate the company’s future.
In March, allegations of financial irregularities spurred an inquiry into the firm, which was valued at $970 million in 2019, and resulted in the removal of co-founder Ankiti Bose as CEO in May.