Singapore-based venture capital firm Vertex Ventures has acquired $5 million worth of common shares in Reebonz Holding Limited (RBZ), the entity created after the merger of Singapore’s homegrown online luxury marketplace Reebonz with US-based Draper Oakwood Technology Acquisition (DOTA).
The investment by Vertex Ventures was made out of its Vertex Co-Investment Fund. Another UK-based investor, S4 Limited, also agreed to acquire 1 million shares of Class A common stock in RBZ, according to an SEC filing.
Subsequent to the merger with DOTA, a NASDAQ-listed special purpose acquisition company, RBZ has been trading on the Nasdaq since December 20, 2018.
In an SEC filing on December 26, 2018, RBZ disclosed that it did not meet the listing requirement of having a minimum shareholders’ equity amount of $4 million, which may cause it to be potentially delisted.
RBZ is currently led by Reebonz’s current management. Its current CEO and co-founder Samuel Lim has become the chairman and chief executive of RBZ. Reebonz did not respond to emails seeking comment.
Founded in 2009 by Samuel, Daniel Lim and Benjamin Han, Reebonz operates an online marketplace and platform for buying and selling new and pre-owned luxury products in the Asia Pacific. It claims to have over 5.5 million members, more than 350 employees and business operations in Singapore, Malaysia, Indonesia, Taiwan, Hong Kong, Thailand, Australia, South Korea, China, and the US.
Reebonz backers include Vertex Ventures, GGV Capital, Intel Capital, Matrix Partners China, Mediacorp, SGInnovate, FengHe Group, OCBC Bank, All Star Investments managing partner and chief investment officer Richard Ji, and Morningside Venture Capital managing director Richard Liu, amongst others.
RBZ closed at $1.72 on Tuesday, down 17.31 per cent.