Permodalan Nasional Berhad (PNB) recently addressed the RM18.7 million loss incurred from its investment in the e-commerce company FashionValet (FV) Sdn Bhd. The organization clarified that this investment was funded by PNB’s proprietary capital not by the unit trust funds managed by Amanah Saham Nasional Berhad (ASNB) which are widely held by the public.
PNB reported that the loss followed its RM21.8 million (US$5 million) investment in FV’s Series C fundraising round in 2018, which was expected to capitalize on FV’s projected 60% annual revenue growth. However, FV was later impacted by the COVID-19 pandemic which led to store closures and cash flow challenges due to substantial investments made in physical outlets, ultimately affecting its online operations as well.
With FV requiring additional capital, PNB and other existing investors opted not to contribute further, given the heightened financial risk. After a prolonged fundraising process from 2022 to 2023, a Bumiputera investor agreed to inject new capital at a reduced valuation and offered to buy out the stakes of existing shareholders, including PNB. Given the circumstances, PNB chose to sell its minority stake, with the sale yielding RM1.3 million.
PNB emphasized that all funds initially invested were directed to FV’s growth and not to personal gains for existing shareholders, including the founders, Datin Vivy Yusof and Datuk Fadzaruddin Shah Anuar, who recently announced their departure from the company. This decision was made to allow FV to move forward amid its current turnaround efforts.
Following Communications Minister Fahmi Fadzil’s call for PNB and Khazanah Nasional to clarify their RM43.9 million combined loss, PNB reaffirmed that it has implemented stringent risk measures and views the loss in the context of its substantial asset base of RM337 billion and investment income of RM16.4 billion in 2023.
