Zilingo which is a Singapore-based fashion platform has acquired Sri Lanka-based software-as-a-service (SaaS) firm nCinga Innovations for $15.5 million in cash and stock, the two said today. It is one of the largest tech exits in Sri Lanka in recent times.
BOV Capital, Singapore- based venture capital firm and Sri Lanka back up nCinga. Founded in 2014, nCinga uses IoT technologies, real-time event capturing and processing, predictive analytics, and mobility devices for a ‘smart factory’ transformation. All these processes can be used to enable real-time production monitoring on factory floors.
What does nCinga provide?
According to the company, its platform nFactory allows the collection of organizational data and provides real-time integration, connection, search, visualization, and analysis of the data. The platform is already been used across factories in Sri Lanka, Bangladesh, India, Indonesia, Thailand, Singapore, and Vietnam.
Zilingo has set up several pieces of the supply chain including manufacturing, logistics, payments, etc. for retailers and brands. It said it will deploy the Sri Lankan startup’s Manufacturing Execution System (MES) software across its vast network of 6,000 factories and 75,000 businesses.
The co-founder and chief executive of Zilingo, Ankiti Bose said that nCinga’s product has supported them in “drastically improving” efficiency and driving insights by digitizing the shop floor. “Their work has been crucial to our mission of creating a transparent, sustainable, economically viable and socially responsible apparel supply chain”, she said.
Zilingo has been a client of nCinga for a “long time”, she said.
Zilingo pointed out that retailers continue to combat with meeting consumer demand for fast, responsibly produced products due to lack of efficiency and asymmetry in handling information. The acquisition will enable Zilingo to support customers in the United States, Europe, and Australia, where brands traditionally are short with transparency over the supply chain and manufacturing processes, it said.
Zilingo plans to leverage its global manufacturing network to boost the distribution of the software specifically for core fashion manufacturing markets such as Bangladesh, India, Vietnam, Indonesia, Thailand, and Turkey among others. In a statement, nCinga chief executive Imal Kalutotage said the startup “hopes to do great things together”.
The company announced in October that it plans to invest $100 million to expand into the US to implement its accelerated growth strategy into new markets, including Australia, Europe, and the Middle East.
Founded in 2015, Zilingo last raised $226 million in a Series D round in April, joined by existing investors Sequoia Capital, Burda Principal Investments and Sofina, as well as new investors Temasek Holdings and EDBI. The company was believed to be valued at close to $1 billion at the time.
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