In a statement tonight, Khazanah said it had accepted an offer to acquire existing shareholders’ stakes and inject capital into the company “in view of the company’s urgent need for funds to continue operations, and the fact that the investment had reached the end of its targeted holding period”.

“The divestment represented a responsible exit to transfer ownership to a party who could help guide the company to a new growth trajectory,” it said in a statement tonight.

Earlier today, Fashion Valet’s founders, local fashion icon Vivy Yusof and her husband Fadzarudin Anuar, said they would be stepping down from their management posts in the company to take full responsibility for Khazanah and PNB’s losses.

The offer to take over the company was reportedly made in late 2023 by NXBT Partners, an investment holding company controlled by Afzal Abdul Rahim, the CEO of TIME dotCom Bhd.

Khazanah is believed to hold a 32.34% stake in TIME dotCom.

The offer to take over FashionValet was from a company “led by a seasoned Malaysian entrepreneur” which offered to acquire existing shareholders’ stakes and inject capital, Khazanah said in a statement.

Khazanah said it had originally invested RM27 million for a 9% stake in Fashion Valet in 2018 in view of its promising potential, with 400 brands on its e-commerce platform and a projected revenue growth of 60% per year.

It said challenges worsened by the Covid-19 outbreak forced Fashion Valet to pivot focus on growing its in-house brands, Duck and Lilit, to preserve its operating margins and cash flow. However, it continued to struggle in securing capital between 2022 and 2023.

Khazanah said it would continue to invest in local startups and promote their success and expansion “despite the higher inherent investment risks and challenges with early-stage companies”.