Singapore-headquartered fashion marketplace Zilingo is in talks with its existing investors to raise around $80 million for its Series D round, an executive with direct knowledge of the development told this portal.
The latest deal could value the three-year-old e-commerce startup at over $500 million, the executive added.
In April, Zilingo had raised a $54-million Series C round largely from its existing investors Sofina, Burda Principal Investments and Sequoia Capital India. That round was joined by return backers Tim Draper, SIG, Venturra, Beenext and Manik Arora, as well as new investor Amadeus Capital.
The Series C round had taken the total funding raised by the company to about $82 million.
The ongoing Series D fundraising is led by return backers Sofina, Burda Principal Investments and Sequoia Capital India and is expected to be announced in the next few weeks, the executive quoted above added.
When contacted, the company declined to comment. Another executive, aware of the company’s plans denied that a new round of fundraising was on, and said that company had not received any termsheet/s from (existing) investors for its Series D round.
Another executive, linked to an investor in the company, and familiar with the matter, said that with Zilingo exceeding its growth targets, it had set out to raise anywhere between $40 million to $100 million, prior to looking at a larger institutional or private equity-led round next year. This executive further added that if Zilingo were to maintain its current pace of growth, it will be on track to become a unicorn (private firms with valuations of over $1 billion) by next year-end.
Zilingo is an e-commerce platform that serves over 10,000 merchants and retailers across B2B and B2C segments in Southeast Asia. It currently sells in Indonesia, Thailand, Singapore and also ships internationally to four countries. It also has supply bases in Singapore, Thailand, Indonesia, China, Bangladesh, Vietnam and Cambodia.
Since launching its first B2C products in ASEAN in November 2015, the company’s revenues have expanded over 10 times. Zilingo attributed the jump to B2B sales in Indonesia. The company has been doubling down efforts on the market, launching a TV campaign and expanding its merchant ecosystem to include services.
Zilingo’s strength in B2B comes amid stark competition in the B2C segment with players like Lazada deepening their foothold in the region. According to TechCrunch, Zilingo’s core B2C business now accounts for just 40 per cent of its revenue.
Zilingo is also setting its sights beyond Southeast Asia.
In April, the company tested the launch of ZilingoAsiaMall for fashion sellers and labels based in the US and Europe, according to TechCrunch. ZilingoAsiaMall is a destination where smaller retailers and B2B buyers can source items from Southeast Asia-based resellers for prices similar to what top global fashion brands get.