Singapore’s Zilingo acquires Sri Lankan startup nCinga Innovations for US$ 15.5 million
A Singapore-based fashion platform, Zilingo, has reportedly announced that it has acquired Sri Lankan startup nCinga Innovations for US$ 15.5 million in cash and stock
“What excited us about the nCinga product was their ability to dramatically improve efficiency and drive insights by digitising the shop floor,” Zilingo Co-Founder and Chief Executive Ankiti Bose has said in a statement.
“We have partnered with them for a long time and their work has been crucial to our mission of creating a transparent, sustainable, economically viable and socially responsible apparel supply chain,” she has noted.
Zilingo has further stated that the acquisition will drive the adoption of nCinga’s nFactory software across its global network of 6,000 factories and 75,000 businesses.
According to reports, nFactory uses internet of things technolocies, real-time event capturing and processing, predictive analytics and mobility devices for ‘smart factory’ transformations.
The software automates operations on the factory floor by enabling access to real-time data on the go and nFactory has been deployed across factories in Sri Lanka, Bangladesh, India, Indonesia, Thailand, Singapore and Vietnam.
Zilingo plans to leverage its global manufacturer network to increase distribution of the software – specifically for core fashion manufacturing markets such as Bangladesh, India, Vietnam, Indonesia, Thailand and Turkey among others.
According to Zilingo, the acquisition will bring more features to the company’s customers in the United States, Europe and Australia, where brands traditionally lack transparency over the supply chain and manufacturing processes.
The acquisition marks one of the largest tech-buyouts in Sri Lanka.
nCinga, founded in 2014, was backed by Sri Lanka and Singapore-based BOV Capital.
The firm’s Chief Executive Imal Kalutotage has said the Sri Lankan startup’s vision aligns with Zilingo.
“Both the teams align on shared values and a global ambition to make the fashion and apparel industry fair, transparent and efficient, we hope to do great things together,” he has said.
Founded in 2015, Zilingo has raised US$ 226 million earlier in 2019 through Sequoia Capital, Burda Principal Investments and Sofina, as well as new investors Temasek Holdings and EDBI.
Analysts believe Zilingo to be valued at close to US$ 1 billion.
In October, Zilingo had announced plans to invest 100 million US dollars to expand into the US as part of an accelerated growth strategy into new markets, including Australia, Europe, and the Middle East.
OSL take:
The latest acquisition is indicative of the growth and strength of Sri Lanka’s private sector. The business as well as growth potential of Sri Lanka’s private sector are encouraging for foreign businesses/investors to explore opportunities in Sri Lanka. Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country and the many trade agreements as well as trade concessions enjoyed by the country have made it an attractive business destination in the South Asian region.
| Article Code : | VBS/AT/18122019/Z_4 |