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Zilingo founders join hands, make buyout offer to avoid liquidation

According to the letter, the new investor will be infusing $8 million in equity in tranches. The offer further stated that pursuant to Singapore's Insolvency, Restructuring, and Dissolution Act, Zilingo will be transferred to the ownership of a newly incorporated entity.

June 19, 2022 / 06:54 PM IST
Ankiti Bose (Image: @ankitibose/Instagram)

Ankiti Bose (Image: @ankitibose/Instagram)

Zilingo founders Ankiti Bose and Dhruv Kapoor have joined hands to make a management buyout offer of the company as the Singapore-based business-to-business (B2B) e-commerce startup is staring at voluntary liquidation, according to sources aware of the matter.

"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," Dhruv Kapoor, Zilingo's co-founder and chief technology officer, told the Board of Directors of Zilingo, in a mail, a copy of which was viewed by Moneycontrol.

"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," Kapoor added.

According to the letter, the new investor will be infusing $8 million in equity in tranches. The offer further stated that pursuant to Singapore's Insolvency, Restructuring, and Dissolution Act, Zilingo will be transferred to the ownership of a newly incorporated entity.

Bose endorsed Kapoor's offer in a mail to shareholders, a copy of which was seen by Moneycontrol.

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"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 said.

Sequoia Capital, which owns 26.5 percent in Zilingo declined to comment on the story.

Meanwhile, a spokesperson for Zilingo 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 the founders in a joint statement, when contacted by Moneycontrol.

"No matter what our differences may be, at the end of the day we started this company with the same goal. Today we have come together to fight for that same goal," the founders added.
Chandra R Srikanth is Editor- Tech, Startups, and New Economy
Nikhil Patwardhan
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