Many arms, weak core. Zilingo’s unravelling “octopus strategy”

Zilingo wanted to lure blue-chip investors with a plan to burst into Hollywood as a fashion partner for celebs and brands. But its target influencer cohort didn't buy it as it had hoped. Now it's stuck at home in Southeast Asia trying to rebuild itself...during a pandemic

Zilingo, valued at nearly US$1 billion, jettisoned ambitious international plans following the outbreak

But its plan to let influencers and brands tap into Asia’s supply chain ran into issues before the pandemic struck the fashion industry

Despite two offices, US$100 million in firepower and an investment from rapper Jay-Z, it couldn’t realise its potential

Now Zilingo has refocused on the less lucrative Southeast Asian market, can it still satisfy investors expecting hypergrowth?

Online fashion startup Zilingo has raised US$308 million to date. The five-year-old Singapore-based company was valued by investors at US$970 million—touching distance from the hallowed US$1 billion ‘unicorn’ market—when it raised US$226 million for its most recent round in February 2019.

However, online fashion in the times of influencer-led marketing on platforms like Instagram meant just raising funds wasn’t enough. Who it raised from mattered. In 2019, Zilingo raised funds from rapper Jay-Z’s VC fund Arrive. The deal itself was worth less than US$1 million, a person with knowledge of discussions said. They requested anonymity because they were not authorised to discuss company financing in public.

AUTHOR

Jon Russell

Jon Russell is Southeast Asia editor for The Ken based in Bangkok. Originally from the UK, Jon moved to Thailand in 2008. He’s passionate about telling thoughtful business stories, and tracking the impact of the internet in his adopted home of Southeast Asia.

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