The board of fashion ecommerce company Zilingo has greenlit the repayment of up to US$40 million to creditors, Bloomberg reported, citing sources familiar with the matter.
This could further pressure the financial position of the startup, which is already struggling with cash burn and lack of fresh investments.
In May, Zilingo fired its CEO, Ankiti Bose, on alleged charges of financial irregularities.
The Sequoia-backed startup has been embroiled in controversy after it reportedly started seeking out investors to raise up to US$200 million – a move that triggered a probe into business transactions across its platform.
Since then, nearly 100 employees at the company have quit, including some senior management. Zilingo has also halted some of its operations in Indonesia, the Bloomberg report added.
Editing by Kul Bhushan and Arpit Nayak
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