Rise and Fall of Zilingo: What Went Wrong?
| Case Code: LDEN200 Case Length: 9 Pages Period: 2019-2023 Pub Date: 2023 Teaching Note: Available |
Price: Rs.300 Organization : Zilingo Industry :Technology & Communications Countries : Singapore Themes: Leadership & Values Entrepreneurship, Corporate Governance,Organizational Crisis |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Strong Venture Capital Backing
Bose was able to convince investors that Zilingo was a new model for the emerging world and she succeeded in raising funding within a few months of its inception. The company raised USD1.9 million in a seed round on November 9, 2015. Within a year – on September 05, 2016 – it closed a USD8 million Series A round The fashion-technology platform was able to raise..
Early Decisions
Right from when they set up Zilingo, Bose and Kapoor had faced their fair share of challenges. In the first year of operation, Zilingo adopted a business-to-consumer (B-to-C) model. The startup struggled due to the narrow margins and the low average income of consumers in Southeast..
Difference of Opinions
In the first few years of the company’s inception, there were concerns about Bose’s strategic decision making skills and the large cash burn she had advocated. The differences between the co-founders came to the fore when Bose proposed acquiring Sri Lanka-based tech startup nCinga. Through the acquisition..
Operational Issues and Allegations
Despite holding a significant individual stake of 8.5 percent each in the start-up, the cofounders focused on their individual roles and responsibilities. Kapoor was mainly occupied with tech and product development, whereas Bose looked after administration..
What next?
Bose denied any wrongdoing and argued that she was getting blamed for decisions and practices that were well known to the company’s directors and senior leaders. In particular, she emphasized that Sequoia and its managing director Singh had been closely involved in many of Zilingo’s discussions and daily operations..
Exhibits
Exhibit I: Zilingo’s Top 5 Shareholders
Exhibit II: Zilingo’s Revenues and Losses (FY2018 to FY2022)
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