Khazanah and PNB sold FashionValet shares at a loss of RM43.9 million, Ministry of Finance says

KUALA LUMPUR: Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) have sold their collective stakes in Malaysia’s first fashion e-commerce platform Fashion Valet Sdn Bhd (FashionValet) for RM3.1 million, the Ministry of Finance said.

This represents a significant loss compared to their initial investment of RM47 million.

In a written reply to Parliament, the Ministry of Finance said Khazanah invested RM27 million and PNB RM20 million in 2018 to acquire minority stakes in FashionValet.

“The investment was aimed at supporting local technology entrepreneurs and the growth of digital retail, especially bumiputra companies.

“However, the Covid-19 pandemic has severely impacted FashionValet’s business, requiring significant new capital to continue operations,” the written response said.

The ministry was responding to a request from Yeo Bee Yin (PH-Puchong), who asked for information about the deal and asked whether other government-linked companies or investment firms had invested in FashionValet.

According to the Ministry of Finance, at the end of 2023, Bumiputera firm NXBT Partners proposed to acquire the shares of Khazanah and PNB and inject the necessary capital into the company.

“Both organizations accepted this proposal as a strategic option.”

Despite the sale of RM3.1 million, the Ministry of Finance described the losses as “minimal” compared to Khazanah and PNB’s total revenues for the year.