PETALING JAYA: Business records revealed that embattled FashionValet Sdn Bhd (FV) experienced five consecutive years of losses before receiving investments from Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB).
Financial records from the Companies Commission of Malaysia (SSM) reveal FV’s losses increased from RM166,793 in 2012 to RM10.7 million in 2017, before Khazanah and PNB invested in 2018, reported Business Times.
The company reported a net loss of RM20.19 million in 2018, the year it received RM27 million from Khazanah and RM20 million from PNB.
Between 2015 and 2017, FV’s total assets grew by almost 300% to RM14.7 million, while total liabilities increased by more than 100% to RM11.7 million.
The company’s financial position improved from current liabilities exceeding current assets by RM401,248 in 2012 to a net asset position of RM1.24 million in 2017.
Khazanah stated their investment decision was based on FV being “a promising homegrown e-commerce platform” in 2018, with more than 400 brands and 15,000 products, expecting revenue growth of about 60% annually.
“Our investment rationale was anchored on the theme of Offline-to-Online e-commerce, as well as a commitment to support Malaysian entrepreneurs and promising early-stage companies,“ it said in a statement.
READ MORE: Vivy Yusof, husband summoned by MACC for questioning
The Finance Ministry (MoF) reported that PNB’s investment aimed to support the Bumiputera digital retail company’s growth into a regional retail platform for Malaysian brands.
MoF stated the sale of Khazanah and PNB’s interest to NXBT Partners Sdn Bhd represented “a responsible exit to a strategic investor who could continue to assist FashionValet in addressing its financing needs holistically and reviving its business in a challenging industry environment.”
Currently, NXBT Partners Sdn Bhd holds 51% of FV shares, followed by Datuk Fadzaruddin Shah Anuar with 17.7% and Datin Vivy Sofinas Yusof with 17%. NXBT Partners is wholly-owned by Afzal Abdul Rahim, TIME dotcom Bhd CEO and CIMB Group Holdings Bhd senior independent director.
FV’s latest SSM filing shows a net loss of RM34.5 million against RM112.8 million revenue for the financial year ended Dec 31, 2022.
Earlier today, FV founders Vivy and Fadzaruddin were summoned for questioning at the Malaysian Anti-Corruption Commission (MACC) headquarters in Putrajaya.
MACC chief Tan Sri Azam Baki confirmed both founders will be questioned over the losses sustained by PNB and Khazanah Nasional.
“We will record statements from the husband and wife today,“ Azam said.
ALSO READ: Khazanah Nasional, PNB clarify their divestment from FashionValet
