Six questions on: PNB and Khazanah-funded e-commerce platform FashionValet’s closure

KUALA LUMPUR, Aug 4 — When FashionValet, the homegrown on-line store and e-commerce platform that when boasted a multi-million ringgit valuation stated it was once shutting down, the announcement generated odd public pastime.

“As all of them say, all excellent issues should come to an finish… and get replaced with one thing higher. With that, we’re delighted to percentage with you — a brand spanking new buying groceries revel in,” stated the platform in its final days.

Observers have since puzzled how a startup that was once posting losses within the thousands and thousands satisfied two of the rustic’s greatest state funding budget — Permodalan Nasional Berhad (PNB) and Khazanah Nasional Berhad — to inject cash into what looked like a failing undertaking.

Malay Mail makes an attempt to give an explanation for probably the most key questions round the problem:

Who’re the folk at the back of FashionValet?

FashionValet Sdn Bhd was once shaped in 2010 by means of couple Datin Vivy Sofinas Yusof and Datuk Fadzarudin Shah Anuar, who reportedly met each and every different whilst learning at most sensible UK universities, The London Faculty of Economics and Imperial School respectively.

The logo banked on Vivy’s reputation as an influencer and blogger, together with her turning into the face of the gang and its leader inventive officer, whilst engineering graduate Fadza served as leader government officer (CEO).

Tatler Malaysia quoted the couple as pronouncing that the corporate was once registered “tomorrow” when they had an epiphany.

“After going from bumper-to-bumper site visitors, an aggravated Fadza blurted out, ‘Why can’t the whole lot be in a single position?’ It was once as though a lightbulb switched on in our heads,” Vivy was once quoted as pronouncing within the 2017 interview.

Public consideration about FashionValet’s closure is most likely because of the couple’s social media presence. Vivy has 1.8 million fans on Instagram on the time of writing.

What’s FashionValet?

Suppose Lazada, Shopee or Zalora. FashionValet started as an internet store that eyed a distinct segment marketplace comprising native style designers and garments makers.

Many of the merchandise bought at the platform catered to (however was once now not restricted to) the sublime, trendy Muslim girl, outlined by means of what the corporate known as “top rate modest style.”

That very same ethos formed dUCk and Lilit, two in-house manufacturers beneath FashionValet that carved out an enormous Muslim-based buyer base by means of promoting trendy, and occasionally, limited-edition headscarves or hijab, “Shariah-based” good looks merchandise, “modest” style and equipment, house merchandise, and stationery.

Since FashionValet made up our minds to stop operations, the gang has targeted its efforts on those two manufacturers.

The place can one to find FV shops?

On-line, FashionValet served a predominantly Malaysian marketplace, with advertising head Vee Dee Tan quoted as pronouncing its clientele additionally got here from “Brunei, Singapore, Australia and a little bit of the United Kingdom and the Center East”.

At its height, FashionValet opened 5 brick-and-mortar shops together with in upscale buying groceries shops comparable to Pavilion Kuala Lumpur and Bangsar Village 2, and in addition every other in IOI Town Mall Putrajaya.

It additionally opened an outlet on Orchard Highway in Singapore.

When did its monetary troubles start?

According to its newest to be had public monetary remark finishing December 31, 2020, the corporate’s retained profits had been -RM83,442,646.

Unfavorable retained profits most often counsel deficient monetary well being and point out the corporate has been incurring losses for a longer duration.

For the monetary 12 months 2019 to 2020, it posted a pre-tax lack of on the subject of RM15 million.

Malay Mail reached out to the corporate’s public family members company Edelman, however had but to obtain a reaction on the time of writing.

Why is that this a subject matter?

Whilst FashionValet is a personal corporate, a few of its buyers aren’t.

PNB and Khazanah Nasional, each state-investment budget, had been reported to have invested thousands and thousands of ringgit again in past due 2018 and early 2019 via its Collection C rounds of investments, regardless of reporters then asking in regards to the workforce’s losses.

Whilst the quantity was once now not disclosed then, Vulcan Publish reported that FashionValet gained round US$12.06 million (about RM53 million) all the way through Collection C, with its overall investment through the years at over US$19.3 million.

“I’m so excited to do extra for the Malaysian style business; it’s one thing I’m very enthusiastic about. FashionValet is at all times looking out to assist develop extra native manufacturers to compete within the world area, and I’m assured our Malaysian manufacturers have the possible to do exactly that,” Vivy was once quoted as pronouncing by means of DigitalNewsAsia then.

Khazanah and PNB didn’t reply to Malay Mail’s requests for remark.

DigitalNewsAsia reported that different buyers in FashionValet integrated MyEG, Elixir Capital founded in Silicon Valley and Zozotown, Japan’s main on-line style mall.

How has this affected its manufacturers and distributors?

There have been allegations that FashionValet closely promoted its personal two manufacturers on the expense of serving to out different native distributors that used its platform and bodily retail outlets to promote their merchandise, even because it advertised its industry style round selling native marketers.

In a remark reportedly despatched to information outlet SAYS, Vivy was once quoted as pronouncing that the shift of focal point to dUCk and Lilit was once made in 2019, on the identical time that Khazanah and PNB injected budget into FashionValet.

The plan was once then speeded up by means of the Covid-19 pandemic that noticed manufacturers promoting immediately to shoppers moderately than by way of shops.

“We noticed a development of companies increasing their very own channels to promote immediately to shoppers, which is excellent for the booming native style business,” she reportedly stated.

“Even business leaders comparable to Nike had been vocal about lowering their reliance on shops.”

What stays of loads of those manufacturers and architects after FashionValet’s closure is unclear.