The transaction was completed by both parties in the first week of January this year, sources aware of the discussion told ET.
The liquidation process caps a high-octane drama which unfolded at the Sequoia and Temasek-backed startup last year after its investors and board members received information of discrepancies in the company’s accounts, which was later investigated by risk and financial advisory solutions provider Kroll.
The fashion-tech startup initially suspended former chief executive Ankiti Bose, and eventually terminated her services in May last year, following which Bose told ET in an interview that she “was not given the chance to answer any of the allegations levelled against her”.
In June 2022, Bose resigned from directorships at holding company Zilingo Pte Ltd as well as its subsidiaries.
“Buyogo AG announces the acquisition of Ncinga Innovations Pte Ltd, Singapore and Zilingo’s technology capabilities in manufacturing, retail and the fashion industry. Buyogo will be investing in R&D and innovation to enhance sustainability and efficiency for manufacturers, brands and retailers,” it said in a statement.
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Sri Lanka-based Ncinga Innovations was acquired for $15.5 million in a cash-and-stock deal in December 2019, to help scale up Zilingo’s global supply chain capabilities.”This acquisition complements our current business in terms of technology as well as our shared expertise across Europe and Asia. We will be investing in innovation and growth to help our customers transition to next generation sales, manufacturing and sourcing technologies” said Anand Pareek, founder, Buyogo AG, in a statement.
Zilingo, founded in 2015 by Bose and chief technology officer Dhruv Kapoor, will also facilitate the movement of those employees interested in joining Buyogo, a person familiar with the discussions told ET requesting anonymity. However, “employees and resources” are not part of the deal, the person added.
Buyogo helps small enterprises expand their online business, automate order processing and centralise product information.
News wire Bloomberg reported last week that Zilingo’s board had appointed EY Corporate Services Pte as provisional liquidator and approved the process of its liquidation.
Zilingo’s alleged accounting irregularities came to light when it was in the final stages of talks to raise $150-$200 million in a fresh round at a potential valuation of $1.2 billion, paving the way for the startup to become a unicorn, ET reported in April last year.
In June last year, Bose had endorsed a management buyout proposal from cofounder Kapoor to avoid liquidation. Kapoor proposed to pay up $48 million in outstanding debt and infuse an additional $8 million in fresh equity into the company.
In April 2022, Sequoia Capital India’s Shailendra Singh and a long-time supporter of Bose stepped down from the board of troubled Zilingo Pte. The company also saw high-profile departures last year including chief financial officer Ramesh Bafna, who was being considered to take over as Zilingo’s interim CEO and chief operating officer, and Aadi Vaidya, who had joined the startup in 2015.
Zilingo had raised $226 million in its last funding round in 2019, led by existing investors Sequoia Capital, Singapore’s sovereign wealth fund Temasek and others, after which it was valued at $970 million. It also raised a bridge round of $35 million from existing shareholders in 2021.