Singapore-based fashion platform Zilingo has trimmed its global workforce by 5 per cent, including about 30 people in the city-state, as it now focuses on core business plans in Asia and emerging markets, the company has confirmed.
“Zilingo has had to make several tough decisions in line with this approach and last week we announced internally company-wide restructuring measures that reflect this strategic direction,” a company spokesperson told DealStreetAsia.
“As part of this planned restructuring, less than 5 per cent of the 900-strong workforce were affected, with some designations becoming redundant.”
Zilingo’s strategic direction is to focus on a sustainable ecosystem for retailers, manufacturers, and the entire supply chain network, she added.
“We see great opportunity to continue to facilitate this ecosystem by focusing on the connection of key players through our technology platform, with a B2B-focused approach,” the spokesperson said.
There have been a string of layoff announcements by major Asian startups this year. These include Indonesian ride-hailing major Gojek, which is reportedly undertaking another wave of layoffs affecting over 100 employees, and India’s largest hospitality startup Oyo, which is planning to fire more than 2,000 people in India and China. Iflix, Malaysia’s on-demand video platform focused on emerging markets, also laid off an undisclosed number of its staff as it faces uncertainties related to the virus outbreak.
DealStreetAsia has been reporting on such cutbacks and will have a long-form story on the developments in the region.
Zilingo has embarked on a business streamlining as it refocuses on Asia and emerging markets while putting its US and Europe expansion on hold with the coronavirus outbreak causing massive lockdowns resulting in a slump in consumption.
“As we continue with the internal reorganization and move forward, we seek the support and cooperation of our merchant partners, sellers and the Zilingo family at large in our combined efforts,” the spokesperson said.
Zilingo started expanding in the US with a $100-million investment in September as part of an accelerated growth strategy into new markets, including Australia, Europe, and the Middle East.
In December, the fashion platform paid $15.5 million in cash and stock to acquire Sri Lanka-based software-as-a-service firm nCinga Innovations.
Founded in 2015 by Ankiti Bose and Dhruv Kapoor, Zilingo acts as an e-commerce platform allowing merchants to sell to end consumers in Southeast Asia.
It has since branched into solving “upstream” problems in the fashion supply chain industry including sourcing, software, data, and financing. Its technology-led solutions target five key areas: software, data science, financial services, sustainability, and compliance.
Zilingo said it has 60,000 retailers and 6,000 factories on its platform, across 17 countries. In 2018, the startup launched Zilingo Asia Mall (ZAM), an extension of its B2B segment in the US and Europe.
