According to people familiar with the situation, Zilingo Pte co-founders made a last-ditch offer to buy the troubled fashion e-commerce platform as the board debates its future.
According to the people who asked not to be identified because the matter is private, co-founder Dhruv Kapoor proposed a management buyout to the Singapore-based company’s board on Sunday. According to the people, he has secured commitments from a small group of new investors, including a US private equity firm.
According to Kapoor’s email to investors, which was seen by Bloomberg News, the investor group will inject $8 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 an email, all outstanding debt owed to creditor Zorro Assets Ltd. will be frozen for three years.
According to people familiar with the situation, Zilingo’s board of directors is scheduled to meet on Monday to discuss the company’s future. In March, allegations of financial irregularities prompted an investigation into the company, which was valued at $970 million in 2019, and resulted in the firing of co-founder Ankiti Bose as CEO.
