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Sri Lanka’s nCinga acquired by global technology platform Zilingo

Sri Lanka’s nCinga acquired by global technology platform Zilingo

Global technology platform Zilingo has reportedly acquired Sri Lanka-based startup nCinga Innovations resulting in cash and stock worth approximately Rs 2.8 billion (USD 15.5 million) changing hands.
This landmark deal was one of the largest Sri Lankan tech buy-outs in recent times, Sri Lanka’s state owned Daily News has reported.
Sri Lanka-Singapore based Venture Capital fund BOV Capital, the lead investor in this landmark deal, had given a 300% return to its global investors, which has resulted in the distribution of funds of up to Rs. 380 million.
BOV Capital is the first Sri Lankan and Singaporean Venture Capital fund focusing on Sri Lanka-based tech start-ups; BOV Capital made an initial, seed investment in nCinga in 2017 via the Singaporean fund and follow-on rounds via the Sri Lankan fund (Digital Innovation Fund).
“Sri Lanka has very special skills in computer science and we believe Sri Lankan founders can build vertical and focused horizontal software companies that can scale regionally and globally. Like with the nCinga exit, our aim is to help start-ups accelerate growth in the region. We do this by bringing in smart money. We help each entrepreneur with product-market fit, regional expansion, team building, follow-on funding and eventually exit opportunities,” BOV Capital Co-Founder Prajeeth Balasubramaniam has been quoted as saying.
Established in October 2014, nCinga’s Manufacturing Execution System (MES) software automates operations on the factory floor, allowing factories to dramatically improve efficiency and reduce defects by accessing real-time production data and actionable performance reports and the software has been successfully deployed by some of Sri Lanka’s largest apparel manufacturers.

OSL take:

The latest acquisition of a local entity is yet another indication of the strength and growth of the country’s private sector. The business conducive environment and the ease of doing business environment in the country have helped the growth of Sri Lankan companies. 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. Therefore foreign businesses/investors could explore opportunities of investing in local businesses or look at forming partnerships/joint ventures with Sri Lankan companies to use the trade facilities enjoyed by the island to further expand businesses in the Indian Ocean region.

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Article Code : VBS/AT/20200124/Z_4

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