Zilingo co-founders Ankiti Bose and Dhruv Kapoor have joined hands once again to propose to make a buyout offer of the company, a report has said recently. This comes at a time when the Singapore-based business-to-business (B2B) fashion e-commerce startup is staring at voluntary liquidation. As per the report, Dhruv Kapoor has proposed the buyout of the Sequoia Capital-backed company to its board, and Ankiti Bose has lent her support to the decision.
Kapoor said in a letter to the board on Sunday that he had “firm investor commitments” and was making a “preliminary, non-binding offer” so that he could pay off the $48 million outstanding debt that is owed to o Varde Partners and Indies Capital, Livemint reported.
“Given the potential of the business and the value you know this company can achieve, I urge you to consider the management buyout offer as a preferred alternative to voluntary liquidation,” said Dhruv Kapoor, who is also the chief technology officer of Zilingo, as per a separate report by Moneycontrol.com.
“I make this offer on the basis of firm investor commitments and having appointed legal and financial advisers in respect of the management buyout offer,” read the letter to the board, as per the report by Moneycontrol.
The letter further states that the new investor will infuse $8 million in equity in tranches to pay off the debt. The offer also says that keeping in accrodance with the Singapore’s Insolvency, Restructuring, and Dissolution Act, Zilingo will be handed over to the ownership of a freshly incorporated entity.
Zilingo co founder Ankiti Bose immediately showed support to the offer, and endorsed it in an email sent to board members. “I would like to encourage all interested parties to engage alongside the management and founder group and the new investor group to support this initiative,” Bose reportedly said in the letter. Both Dhruv Kapoor and Ankiti Bose own 8.5 per cent stake each in the company.
Moneycontrol in its report quoted a spokesperson of Zilingo who said “an independent financial advisor was appointed by the Company which is in the midst of assessing options for the business. More information will be provided in due course.”
“As founders, it is our ultimate responsibility to make sure that we do whatever it takes to make sure the lights stay on at Zilingo and in the homes of the hundreds of people who are part of it,” said Bose.
The board meeting of Zilingo is scheduled on Monday, which will discuss the voluntary liquidation of the company involving the sale of its assets. As per the offer, the new company will issue a 36-month moratorium on the repayment of the debt. This will be done in four quarterly installments after the moratorium. Lenders will remain senior in priority, the offer statement said.
Zilingo came in the spotlight earlier this year when Ankiti Bose was Bose “with cause” after an investigation against her over misappropriation of funds.
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