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Tag: Zilingo

  • Zilingo on the brink as loan recalled, financial advisor appointed

    Zilingo on the brink as loan recalled, financial advisor appointed

    Creditors of Zilingo Pte have decided to recall all of their loan, prompting the company’s board to appoint an independent financial adviser for options for the troubled Singapore-based fashion tech startup.

    “Due to Zilingo’s failure to fulfill prior obligations under the loan agreement, the company’s lenders have made the decision to accelerate the repayment of the entire loan,” Zilingo’s board said in a statement on Friday. “Further, the board has appointed an independent financial adviser to explore options for the company.”

    The development underscores a deepening crisis at Zilingo after Chief Executive Officer Ankiti Bose, 30, was suspended from her duties on March 31 while the firm’s board investigates the startup’s accounting practices. Kroll Inc. has been appointed to carry out the probe.

    Bose, who denies any wrongdoing, said in a statement to Bloomberg News that no debt repayments were missed when she was still the CEO.

    “The first event of default notification was after my suspension,” she said, adding that the creditors recalled debt on May 11. “There were several means of curing the event of default. However, it seems that the interim leadership possibly did not act on them.”

    The investigation into allegations against Bose is close to being completed, according to the board’s statement.

  • Zilingo CEO suspended amid financial probe

    Zilingo CEO suspended amid financial probe

    Zilingo Pte, one of Singapore’s highest-profile startups, has suspended Chief Executive Officer Ankiti Bose after an effort to raise new funding led to questions about the company’s accounting, according to people familiar with the matter.

    The company, which supplies technology to apparel merchants and factories, had been trying to raise $150 million to $200 million with help from Goldman Sachs Group Inc. when investors began to question its finances as part of the due diligence process, said the people, asking not to be identified because the information is confidential.

    The company began by working with small merchants that sell to consumers and then expanded into adjacent areas. As the founders started talking with small sellers, they realized many lacked access to robust technology and essential capital.

    That led them to develop software and other tools that would allow merchants to access factories in places like Vietnam or Bangalore, and would smooth the complicated process of shipping across borders. In 2018, Zilingo began to team up with financial technology firms to provide working capital to small sellers so they can buy raw materials to produce goods.

    In early 2019, Zilingo raised $226 million from investors including Sequoia and Temasek, and pushed its valuation to $970 million, almost the $1 billion mark that earns startups designation as a unicorn. Bose, then 27, was celebrated as a visionary and a sign of the entrepreneurial potential for Southeast Asia.

    “We were a bunch of twenty-somethings with nothing except this dream and we decided to chase it,” she said at the time. Bose had worked at Sequoia earlier and had said the experience helped her build the startup.

    Zilingo, which had grown into a full-blown marketplace for wholesale buyers and sellers in the fashion industry, faced growth troubles after pandemic-fueled restrictions forced many small businesses to shut their doors. To rein in its own costs, Zilingo said it cut a number of jobs in 2020 and downsized marketing, sourcing and support teams in the U.S., Australia, Singapore and Indonesia.

    The company made an aggressive pitch in its latest effort to raise fresh capital. Late last year, it forecast that core net revenue would rise from about $40 million in fiscal 2021 to roughly $60 million in fiscal 2022 and $100 million the year after, according to presentation documents reviewed by Bloomberg News. Zilingo said it anticipated breaking even on core Ebitda — or earnings before interest, taxes, depreciation and amortization — in fiscal 2023 and then reach almost $200 million in fiscal 2026.

    On March 31, Bose was called to a meeting with three board members and told about “serious” complaints about discrepancies in accounts and mismanagement, according to the correspondence reviewed by Bloomberg. She was later questioned by two people from Kroll, the investigations firm. Her suspension is scheduled to run until May 5.

    Bose, through her lawyer, has argued that the directors did not follow proper procedures during the process and questioned their right to suspend her, according to the correspondence from her attorney to Zilingo.

    “We are of the view that our client’s suspension has been procured by invalid and defective means; that the investigation commenced into her is unfair and lacking in due process, and that she has been suspended without proper and reasonable cause,” her attorney wrote.

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  • Zilingo trims staff, refocuses on Asia

    Zilingo trims staff, refocuses on Asia

    Online fashion platform Zilingo has axed about 45 staff, including 30 in its Singapore head office, as it refocuses on Asia in the wake of the coronavirus pandemic.

    The layoffs represent about 5 percent of the company’s global workforce of 900.

    “Zilingo has had to make several tough decisions in line with this approach and last week we announced internally company-wide restructuring measures that reflect this strategic direction,” a spokesperson for the company told DealStreetAsia.

    A year ago, Zilingo raised US$226 million in Series D funding saying at the time it wanted to invest in long-term value building across the supply chain, building new and deeper relationships with manufacturing partners in Vietnam, Cambodia, Sri Lanka and China, and expanding into new markets such as the Philippines, Indonesia, Australia and the US.

    Another $100 million was raised last September to fund growth in Europe, Australia and the Middle East.

    However, with fewer people buying fashion during the Covid-19 pandemic, the five-year-old company has decided to rein in its global reach, to concentrate on Asia and developing markets, shelving operations in the US and Europe.

    “As we continue with the internal reorganization and move forward, we seek the support and cooperation of our merchant partners, sellers and the Zilingo family at large in our combined efforts,” the spokesperson said.

    Zilingo has previously revealed its platform links 60,000 retail partners and 6000 factories spanning 17 countries.

  • Former Citigroup MD James Perry joins Zilingo as the Company’s First CFO

    Former Citigroup MD James Perry joins Zilingo as the Company’s First CFO

    Leading fashion technology platform Zilingo announces today the appointment of James Perry as its first Chief Financial Officer (CFO). The former Managing Director and Head of Technology Investment Banking for Asia Pacific at Citigroup has over 20 years of experience in corporate finance, having helped clients raise over US$150 billion, including 40 IPOs in the US and Hong Kong; and advised technology companies on over US$80 billion in M&A transactions across six continents.

    Earlier this year, Zilingo closed a US$226 million Series D funding round and the company has seen a meteoric rise over the last few years on the back of its technology platform that powers the fashion value chain end to end and provides fashion business with unprecedented access to the technology and services needed to scale efficiently.

    As Zilingo continues its growth in markets including the Philippines, Indonesia, Australia and the US, James will be part of the experienced management team that drives the business to scale rapidly and sustainably.

    Ankiti Bose, Chief Executive Officer and co-founder, Zilingo commented:

    “We are thrilled to welcome James into our leadership team as we expand our horizons and take the company global. It’s a very exciting time for us.”

    James Perry, Chief Financial Officer, Zilingo said:

    “I’m excited to join the Zilingo team. I have seen hundreds of technology companies over my years in banking, Zilingo stands out as an innovator bringing technology and transparency to an industry that has changed little since the industrial revolution. Zilingo is led by one of the most energetic and visionary teams I’ve come across and I look forward to being a part of this journey.”

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  • UOB and Zilingo tie up to drive the growth of ASEAN’s fashion industry

    UOB and Zilingo tie up to drive the growth of ASEAN’s fashion industry

    United Overseas Bank Limited (UOB) and Zilingo, a fashion and lifestyle e-commerce platform, today announced that they have signed a Memorandum of Understanding (MOU) to support the growth of ASEAN’s fashion industry. Under the MOU, businesses on Zilingo’s platform, which are mostly small- and medium-sized enterprises (SMEs), will be able to access UOB’s banking solutions through the e-commerce platform. The greater access to banking solutions will enable Zilingo’s merchants and manufacturers across the region to manage their cash flow better and to grow their businesses more efficiently and easily.

    Ms Ankiti Bose, CEO and Co-founder, Zilingo, said, “Through this collaboration with UOB, we want to reaffirm our commitment towards empowering merchants and manufacturers with everything they need to run their business. Where businesses may find difficulty in accessing capital due to insufficient financial records, Zilingo’s unique position as a connector of the fashion supply chain will allow us to leverage a bird’s eye view of the supply chain to make a comprehensive assessment of the business’ capabilities and value proposition”.

    Mr Choo Kee Siong, Head of Industry Groups, Group Commercial Banking, UOB, said, “At UOB, we have been working with various ecosystem partners to offer our banking products and services to companies across entire supply chains, helping them pursue growth strategies and seize business opportunities. Through our MOU with Zilingo, fashion businesses across ASEAN will be able to access our comprehensive range of banking solutions seamlessly to meet their operational and financial needs.” In addition to supporting Zilingo’s merchants, UOB will also explore support for the e-commerce platform in a number of other areas, from cash management and foreign exchange services to workplace banking services

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  • Zilingo received fresh investment funding

    Zilingo received fresh investment funding

    Online marketplace Zilingo has raised US$226 million in its recent Series D funding.

    The fresh capital round brings the total amount raised by the company to $308 million. Having secured its latest investments, the company is now looking to China as well as other key Asian markets as part of its growth strategy to expand its B2B business.

    Key investors from this latest round included Sequoia Capital, Temasek Holdings, Burda Principal Investments, Sofina, Singapore investment fund EDBI as well as existing investors.

    “Sequoia’s investment in Zilingo dates back to when the company wasn’t even yet incorporated and the name wasn’t finalised,” said Sequoia Capital (India) Singapore’s MD Shailendra Singh.

    “Ankiti and team have rapidly transformed their original ideas about Zilingo into a platform company that serves fashion consumers, merchants, retailers, brands and manufacturers, collectively representing a multi-hundred-billion-dollar market size. We are amazed by the team’s ability to envision and execute against such an ambitious roadmap and are excited to continue to support them on their journey.”

    The company says it plans to invest the capital in long-term value building across the supply chain, building new and deeper relationships with manufacturing partners in Vietnam, Cambodia, Sri Lanka and China, and expanding into new markets such as the Philippines, Indonesia, Australia and the US this year.”

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  • E-commerce firm Zilingo bags US$226m in funding

    E-commerce firm Zilingo bags US$226m in funding

    Singapore online fashion market Zilingo has achieved capital investment of $226 million in a Series D funding round. The investments were made by the firm’s existing backers, including Sequoia Capital, as well as newcomers Temasek Holdings and EDBI, and will support the business’s expansion into fresh markets in the Philippines, Indonesia and Australia, as well as build new infrastructure and modernise its supply chains.

    A report in DealStreetAsia last January suggested that Zilingo was considering listing an IPO with a view to developing offline retail.

    “Sequoia’s investment in Zilingo dates back to when the company wasn’t even yet incorporated and the name wasn’t finalised,” said Sequoia Capital (India) Singapore MD Shailendra Singh.

    “Ankiti and team have rapidly transformed their original ideas about Zilingo into a platform company that serves fashion consumers, merchants, retailers, brands and manufacturers, collectively representing a multi-hundred billion dollar market size.”

    Zilingo serves more than 20,000 merchants and retailers across Southeast Asia. It is currently valued at an estimated $1 billion.

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  • Zilingo hopes to get $50 million more fund

    Zilingo hopes to get $50 million more fund

    Southeast Asian fashion startup Zilingo is set to raise a further US$50 million as it strengthens its operations in Singapore, Indonesia and Thailand and beyond.

    Zilingo was founded in October 2015 by Dhruv Kapoor and Ankiti Bose, who were inspired by the clothing stalls in labyrinthine markets they saw while backpacking across Indonesia and Thailand. Their idea was to connect a fragmented landscape of fashion supply for buyers across Asia.

    Now the company aggregates small fashion retailers in the three Southeast Asian markets on a single platform. With more than 10,000 merchants now on board, the site has evolved into a service attractive to both B2B and B2C customers.

    Users can upload and manage their inventory in any language, using any currency, connecting them through 25 interfaces with logistics, warehousing and payment providers, as well as services like loans, cataloguing and insurance.

    “Nowhere in the world has a horizontal e-commerce company also cracked fashion,” says Bose. “It’s a unique, high-margin category that is highly dependent on fast-moving cycles and has its own nuances. Unlike buying detergent or electronics, fashion is much more about your choice, individuality and trends. It requires a different approach than the rest of e-commerce.”

    Besides selling in Indonesia, Singapore and Thailand, Zilingo ships to four further countries and has supply bases in Bangladesh, Cambodia, China and Vietnam.

    The latest fundraising follows a $54 million round in March.

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  • Zilingo raises $54 million in a new funding round

    Zilingo raises $54 million in a new funding round

    Singapore-based lifestyle marketplace Zilingo has raised US$54 million in series-C funding, taking its total capital raised to $82 million.

    Zilingo was founded in October 2015 by Dhruv Kapoor and Ankiti Bose, who was inspired after seeing the clothing stalls in labyrinthine markets while backpacking across Indonesia and Thailand.

    Their idea was to connect a fragmented landscape of fashion supply for buyers across Asia.

    “Nowhere in the world has a horizontal e-commerce company also cracked fashion,” says Bose. “It’s a unique, high-margin category that is highly dependent on fast-moving cycles and has its own nuances. Unlike buying detergent or electronics, fashion is much more about your choice, individuality and trends. It requires a different approach than the rest of e-commerce.”

    Bose and Kapoor set out to build a proprietary platform where merchants could upload and manage their inventory in any language, using any currency, connecting them through 25 interfaces with logistics, warehousing and payment providers, as well as services like loans, cataloguing and insurance.

    They launched their B2C sites and apps in November 2015 across Southeast Asia, followed by their B2B business, Zilingo’s AsiaMall, where merchants internationally can buy wholesale from Asian suppliers.

    Zilingo is now selling in Indonesia, Singapore and Thailand, and ships internationally to four further countries. As well as Indonesia, Singapore and Thailand, Zilingo has supply bases in Bangladesh, Cambodia, China and Vietnam. There are more than 10,000 independent merchants using the platform to sell to millions of customers around Asia and the world.

    Revenue growth has growth tenfold, and during the past year Zilingo has launched a TV campaign in Indonesia and expanded its merchant ecosystem.

    Zilingo’s latest capital injection follows a $17 million series-B round five months ago.

    “We think the market is showing us the right signs in terms of adoption and retention, so it’s good to double down,” says Bose.

    Each Zilingo office has local leadership, and half the top leadership team are women. “Having so many women at the leadership level, despite being a tech company, gives us a special edge while scaling,” says Bose,

    “Our leadership team comes from 10 different countries in Asia, Europe and North America, and 15 languages are spoken. The cultural diversity gives the team a unique perspective on how to solve challenges creatively.”

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  • Zilingo raises fresh funds for Indonesian expansion

    Zilingo raises fresh funds for Indonesian expansion

    Thai-headquartered fashion and lifestyle online marketplace Zilingo has raised US$17 million in a fresh investment round to fund expansion.

    Much of the funding came from Zilingo’s original investor, Sequoia India, with Burda Principal Investments (BPI), Venturra Capital, SIG, Wavemaker and Beenext also joining in.

    Zilingo is expanding across Southeast Asia and funds from this round are earmarked to strengthen its position in Indonesia.

    The concept is essentially an app-based solution which allows people to find fashion items, chat with vendors and shop online, within a country or cross-border. It targets small fashion retailers and labels and SMEs without the resources or scale to build their own online stores.

    One of the investors, Albert Shyy, principal at Burda, said he was “extremely impressed” with Zilingo’s growth and its focus on strong unit economics.

    “We believe there is a massive opportunity to build the leading fashion marketplace in the region and are very excited to join their journey.”

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  • Zilingo gains seed funding for mobile-first e-store

    Zilingo gains seed funding for mobile-first e-store

    Thai startup Zilingo gives market traders an international eCommerce gateway.

    Zilingo is a mobile-first online marketplace that allows merchants to list their inventory, set their prices, and fulfill online orders. Users can browse through available stores and products, then order and pay with their credit card, according to a report on TechInAsia.

    Zilingo’s services include shipping, packaging, payment options, an analytics dashboard for mobile, order tracking, refund and cancellation options, and consultation on pricing strategy. The app also provides chat, through which a customer can get directly in touch with a merchant.

    The concept was created by Ankiti Bose and Dhruv Kapoor, who saw an opportunity for themselves when they visited the country on vacation. Bose is an ex-McKinsey consultant from Mumbai, India, who later worked for global venture capital firm Sequoia. Together with IIT (Indian Institute of Technology) graduate Kapoor, they decided to create a way for these retailers to find new customers online.

    The startup doesn’t charge merchants for listing, or any other fees, providing most of its services for free. It only takes a cut out of successful sales, wanting to encourage adoption and to “only charge for things that actually add value to the [merchants’] business.”

    Zilingo has only recently gone live, and is available to buyers and merchants across Thailand. Within November 2015, buyers from Singapore, Indonesia, and Hong Kong will also have access to the platform’s Thai sellers. Other Southeast Asian countries will follow, according to the startup. Bose says there are currently more than 300 sellers on the site, Ankiti says.

    The company has already raised external funding, to the tune of US$1.88 million from Sequoia India, Teru Sato of Beenext, and Freecharge’s Kunal Shah and Sandeep Tandon.

    “We are delighted to back Ankiti and Dhruv, a highly talented and committed founding team, in their efforts to build a mobile-first marketplace for Thailand,” says Shailendra Singh, Sequoia India MD.

    “We liked the team and their mobile-first product so much, that we agreed to invest at the concept stage. It’s early days for the company, but we’re excited about the prospects for Zilingo.”

    Thailand’s retail sector is expected to be worth US$179.2 billion in 2016. Despite growing smartphone and credit card usage in the country, however, a lot of retailers haven’t jumped on the eCommerce bandwagon yet, leaving a lot of opportunity on the table.

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  • Sequoia-backed marketplace wants to bring Thai retailers online

    Sequoia-backed marketplace wants to bring Thai retailers online

    When I first visited Thailand not too long ago, one of the first things that hit me were the numerous open-air markets – like the huge Chatuchak market in Bangkok. Shops and market stalls of all shapes and sizes peddled a huge variety of goods, from clothes to trinkets to household items.

    Thailand’s retail sector is expected to hit US$179.2 billion in 2016. Despite growing smartphone and credit card usage in the country, however, a lot of retailers haven’t jumped on the ecommerce bandwagon yet, leaving a lot of opportunity on the table.

    The founding duo of Thailand-based Zilingo, Ankiti Bose and Dhruv Kapoor, saw that opportunity for themselves when they visited the country on vacation. Ankiti is an ex-McKinsey consultant from Mumbai, India, who later worked for global venture capital firm Sequoia. Together with IIT (Indian Institute of Technology) graduate Dhruv, they decided to create a way for these retailers to find new customers online.

    Ankiti, the startup’s CEO, was always fascinated by the startup side of the VC business, she tells Tech in Asia. After that Thailand trip, she was convinced it was time to cross over to being an entrepreneur.

    Zilingo is a mobile-first online marketplace that allows merchants to list their inventory, set their prices, and fulfill online orders. Users can browse through available stores and products, then order and pay with their credit card.

    Zilingo screenshots

    Zilingo’s services include shipping, packaging, payment options, an analytics dashboard for mobile, order tracking, refund and cancellation options, and consultation on pricing strategy. The app also provides chat, through which a customer can get directly in touch with a merchant.

    The startup doesn’t charge merchants for listing, or any other fees, providing most of its services for free. It only takes a cut out of successful sales, wanting to encourage adoption and to “only charge for things that actually add value to the [merchants’] business.”

    Zilingo has only recently gone live, and is available to buyers and merchants across Thailand. Within November 2015, buyers from Singapore, Indonesia, and Hong Kong will also have access to the platform’s Thai sellers. Other Southeast Asian countries will follow, according to the startup. There are currently over 300 sellers on the site, Ankiti says.

    The company has already raised external funding, to the tune of US$1.88 million. The funding comes from Sequoia India, Teru Sato of Beenext, and Freecharge’s Kunal Shah and Sandeep Tandon.

    “We are delighted to back Ankiti and Dhruv, a highly talented and committed founding team, in their efforts to build a mobile-first marketplace for Thailand,” says Shailendra Singh, managing director at Sequoia India. “We liked the team and their mobile-first product so much, that we agreed to invest at the concept stage. It’s early days for the company, but we’re excited about the prospects for Zilingo.”

    Are you eager to shop from Thai retailers online? Do you think Zilingo has found a good way to digitize Thailand’s merchants?