Zilingo’s co-founder Dhruv Kapoor has made a management buyout offer to the board of directors as the company is nearing a liquidation. Former co-founder and CEO Ankiti Bose has also supported the offer, according to sources close to the development.
In an email, Kapoor has made the proposal to pay $48 million in outstanding debt and put $8 million in additional funds in fresh equity. Bose and Kapoor own an 8.5 per cent stake in the company.
“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. 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,” Bose said in a media statement.
This development comes ahead of a Zilingo board meeting which is scheduled for Monday (June 20), wherein the liquidation of Zilingo is going to be discussed.
Financial irregularities
The Sequoia-backed fashion technology start-up had terminated Bose following an independent forensic investigation that looked into complaints of financial irregularities.
“Following an investigation led by an independent forensics firm that was commissioned to look into complaints of serious financial irregularities, the company has decided to terminate Ankiti Bose’s employment with cause, and reserves the right to pursue appropriate legal action,” the company said in a statement.
Commenting on her termination, Bose earlier said, “I have not seen the investigation reports done by the independent firms. I was not given sufficient time to produce any documents requested by them.” Zilingo did not respond to BusinessLine queries. Kapoor could not be immediately reached for comments.
Published on
June 20, 2022