Singapore-headquartered fashion-focused technology platform Zilingo has acquired Sri Lanka-based software-as-as-service (SaaS) firm nCinga for $15.5 million, in what is considered as the largest tech-related transaction in Sri Lanka’s history.
The deal also marks Zilingo’s first acquisition after raising $226 million in a Series D funding round in April backed by existing and new investors, including Sequoia Capital and Temasek Holdings, according to a statement.
nCinga, by Sri Lanka and Singapore-based venture capital firm BOV Capital, Dunamis Capital, Singapore Angel Network, and Dialog Axiata Digital Innovation Fund, provides an all ll encompassing tech solution for the apparel, manufacturing, and telecommunication industries.
It uses real-time event capturing and processing, predictive analysis, and Internet-of-things technologies, to transform manufacturing facilities into a “smart factory”.
It operates nFactory, its Manufacturing Execution System (MES) for next-generation smart factories. The platform has already been deployed across factories in Sri Lanka, Bangladesh, India, Indonesia, Thailand, Singapore, and Vietnam.
“The fourth industrial revolution is well upon us, and technology is completely changing the manufacturing game with real-time insights to reduce wastage, bring order predictability and increase efficiency,” Mudith Maddumarachchi, Head of Global Sales, nCinga Innovations Singapore, earlier said.
Zilingo’s acquisition of nCinga will drive the adoption of the MES software across Zilingo’s global network of 6,000 factories and 75,000 businesses, enabling access to previously untapped markets.
“What excited us about the nCinga product was their ability to dramatically improve efficiency and drive insights by digitising the shop floor,” said Ankiti Bose, Co-Founder and CEO of Zilingo.
Zilingo said it plans to leverage its global manufacturer network to increase distribution of the software – specifically for core fashion manufacturing markets such as Bangladesh, India, Vietnam, Indonesia, Thailand, and Turkey among others.
The acquisition comes as the global fashion industry is now valued at over $3 trillion, a huge market for those who can provide value to key players. Zilingo said its acquisition of nCinga will bring additional features to its customers in the US, Europe, and Australia.
Zilingo earlier announced that it will be investing up to $100 million in the US as part of efforts to tap into new markets.