Singapore-based fashion marketplace Zilingo has appointed a liquidator to wind up the firm, according to filings with Singapore’s Accounting and Corporate Regulatory Authority (Acra).
Professional services firm EY’s Singapore unit EY Corporate Advisors Pte. Ltd. has been appointed as the provisional liquidator, per a filing dated January 18. The filing was signed by Zilingo board members Plern Suraphongchai, managing partner at Koru Partners; Neil Fong, principal, Burda Principal Investments; and Sandeep Kher, director and head of finance at Sequoia Capital India.
A meeting with creditors, including Indies Partners and Varde Partners, is scheduled to take place on February 10, which will see the board lay out a full statement of affairs at Zilingo, disclosing its assets, liabilities, a list of creditors, and the estimated amount of their claims.
Sequoia India’s Kher will represent the Zilingo board at the meeting with the creditors, according to the filing.
DealStreetAsia has reached out to Zilingo’s board for comment.
The move to liquidate comes nearly a year after the Zilingo board launched an internal probe and sacked its CEO, Ankiti Bose, over an alleged mishandling of finances. Since then, Zilingo’s operations and team have whittled away as the board struggled to align competing interests over the fate of the firm.
Most of Zilingo’s founding team, including Bose and ex-COO Aadi Vaidya, are no longer with the firm. Dhruv Kapoor, who currently acts as Zilingo’s CTO, is its last operationally active founding member and was still seeking funds from investors in a desperate attempt to resuscitate the firm in September-October last year.
Zilingo, once hailed as a rising venture star from Southeast Asia, had raised over $310 million in venture money from institutional investors such as Sequoia Capital India, Temasek Holdings, and Burda Principal Investments.
One of the key issues of contention was the way Zilingo recognised revenue on its books, including seller discounts and incentives. Zilingo has yet to file its financial statements with ACRA for two years (2020 and 2021).
The allegations and investigation have raised questions about the timing and Zilingo’s investors’ supposed ignorance of the startup’s financial troubles. Sequoia Capital India, which had to grapple with a series of corporate governance issues in portfolio firms, including BharatPe, Trell, and Zetwerk, last year, has also been under scrutiny.
Another Sequoia India-backed firm, Indian car service and repair company GoMechanic, recently made headlines for inflating its revenues, leading to further questions over the hallowed VC firm’s due diligence practices.