Singapore-based Zilingo acquires Sri Lanka’s nCinga for US$15.5mn

Singapore-based fashion platform Zilingo has acquired Sri Lanka-based software-as-a-service (SaaS) firm nCinga Innovations for US$15.5 million in cash and stock, which is being dubbed as the third-largest tech exit in Sri Lanka.

nCinga, which is backed by Sri Lanka and Singapore-based venture capital firm BOV Capital, uses IoT technologies, real-time event capturing and processing, predictive analytics, and mobility devices for ‘smart factory’ transformation.

“What excited us about the nCinga product was their ability to dramatically improve efficiency and drive insights by digitising the shop floor. 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,” Zilingo Co-founder and CEO Ankiti Bose said.

Zilingo in a statement said that it wants to adopt nCinga’s Manufacturing Execution System (MES) software across Zilingo’s global network of 6,000 factories and 75,000 businesses, enabling access to previously untapped markets.

The MES software automates operations on the factory floor by enabling access to real-time data on the go. Currently, Zilingo has its supply base in Singapore, Thailand, Indonesia, China, Bangladesh, Vietnam and Cambodia. Its customer base includes Indonesia, Thailand, Singapore, and also ships internationally to four more countries, including US, Europe and Australia.

The acquisition in particular is expected to bring added features to Zilingo’s customers in the US, Europe, and Australia, where brands traditionally lack transparency over supply chain and manufacturing processes.

Commenting on the acquisition, nCinga Innovations Chief Executive Officer Imal Kalutotage said: “We at nCinga are very inspired by Zilingo’s vision. 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.”

Founded in 2015 by Ankiti Bose and Dhruv Kapoor, the company secured its Series D funding of US$225 million in February 2019 led by Sequoia Capital, Temasek, Burda Principal Investments, Sofina, EDBI, Singapore Investment fund, and existing investors.

The company was believed to be valued at close to US$1 billion at the time. The total funding raised by Zilingo stands at US$304 million up to date.