Zilingo co-founders Ankiti Bose and Dhruv Kapoor have once again joined hands to propose the company’s buyout offer, said a report recently. This comes at a time when the Singapore-based business-to-business (B2B) fashion e-commerce startup is looking at voluntary liquidation. According to the report, Dhruv Kapoor has made an offer to buy out its board to the Sequoia Capital-backed company, and Ankiti Bose Has given his support to the decision.
Kapoor, in a letter to the board on Sunday, said he has “investor commitments” and is making an “initial, non-binding offer” to pay off $48 million of outstanding debt owed to Verde Partners and Indies . Capital, Livemint reported.
Dhruv Kapur, Chief Technology Officer, Zilingo, said, “With the business potential and value that you know this company can achieve, I urge you to consider the management buyout offer as the preferred option for voluntary liquidation. ” According to a separate report by Moneycontrol.com.
“I make this offer on the basis of firm investor commitments and the appointment of legal and financial advisors in relation to the management buyout proposal,” said Moneycontrol’s letter to the board.
The letter further states that the new investor will invest $8 million in equity to pay off the debt. The resolution also stated that Zilingo would be transferred ownership of a newly incorporated entity, in line with Singapore’s Insolvency, Reorganization and Dissolution Act.
Zilingo co-founder Ankiti Bose immediately backed the proposal and endorsed it in an email sent to board members. “I would like to encourage all interested parties to engage with the management and founding group and new investor group to support this initiative,” Bose reportedly said in the letter. Both Dhruv Kapoor and Ankiti Bose hold 8.5 per cent stake in the company.
In its report, Moneycontrol quoted a Zilingo spokesperson as saying, “An independent financial advisor was appointed by the company who is in the midst of assessing the options for the business. More information will be provided in due course.”
“As the founders, it is our ultimate responsibility to make sure that the lights in Zilingo and in the homes of hundreds of people, do everything we can to make sure they stay on,” Bose said.
Zilingo’s board meeting is scheduled to take place on Monday to discuss the voluntary liquidation involving the sale of the company’s assets. Under the offer, the new company will issue a moratorium of 36 months on repayment of the loan. This will be done in four quarterly installments after the moratorium. The statement of offer said that the lenders will remain senior in priority.
Zilingo came into limelight earlier this year when Ankiti was “with reason” after the probe against Bose.
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