After RM47m investment in FashionValet, Khazanah and PNB only ...

Observers previously questioned how a startup that was posting losses in the millions convinced two of the country’s largest state investment funds — Permodalan Nasional Berhad and Khazanah Nasional Berhad — to inject money into what seemed like a failing enterprise. — Picture courtesy of FashionValet

Tuesday, 29 Oct 2024 1:20 PM MYT

KUALA LUMPUR, Oct 29 — Khazanah Nasional Bhd (Khazanah) and Permodalan Nasional Bhd (PNB) received RM3.1 million from the sale of their shares in Fashion Valet Sdn Bhd (FashionValet), the Ministry of Finance (MoF) said on Monday.

In a written response to the Dewan Rakyat, the MoF described the sale as a responsible exit for Khazanah and PNB, transferring their stakes to strategic investors.

In 2018, Khazanah and PNB invested a combined RM47 million in FashionValet, with Khazanah contributing RM27 million and PNB RM20 million, to acquire minority stakes.

“The total loss from the sale of FashionValet shares is negligible compared to Khazanah’s and PNB’s overall income for the relevant year,” the ministry stated.

The statement came in response to Yeo Bee Yin (PH-Puchong), who questioned the total investments by Khazanah and PNB in FashionValet, including losses from devaluation and the sale of shares.

The ministry noted that FashionValet’s business was severely impacted by the COVID-19 pandemic and a difficult fundraising environment, necessitating significant new capital for continued operations.

“In late 2023, Bumiputera firm NXBT Partners offered to acquire Khazanah’s and PNB’s shares in FashionValet and inject the required capital to sustain the business.