Colombo Hilton may be Bankrupted by Sanjiv Alles by introducing non-working Mobile Apps to the Sri Lanka Government owned International Hilton Managed Hilton Property after bankrupting Rs. 10 million from WAPO - Guardian Capital Partners another listed company on Colombo Stock Exchange
Below is how so called Kashmi App developed by Sanjiv Alles and his partner was closed down making loss to to the investors and Watapota - Guardian Capital Partners, according to the annual report.
During the last quarter of the financial year, the board of directors of Kashmi Singapore PTE Ltd informed investors that the company will be discontinuing operations. As a result the Rs. 10.3 Mn investment will need to be written off. Kashmi, which was based out of Singapore, developed a Peer to Peer mobile payment solution with embedded social media functionality. The company was founded by a group of young Sri Lankan entrepreneurs, operating out of Singapore and Sri Lanka. The company later on shifted to building a digital banking platform due to challenges faced in the original product and target markets. The company required further funds to be raised in order to fund product development. Although the company was successful in developing the digital banking product and was successful in signing up a leading commercial bank to roll out the platform in Sri Lanka it was unable to raise a new round of funding and hence had to close down operations. At the time of investment the expectation was for the company to rapidly acquire users and reach sufficient scale to attract the attention of a potential acquirer. As it was a startup and was in the process of seeking initial commercialization of the product, the high risk associated with investment was understood, and hence only a small allocation was made. Comfort was gained from capabilities of the promoters and the fact that the company and promoters had been through two incubators, Turn 8 in Dubai and ‘Startupbootcamp FinTech’ in Singapore.
Hilton COlombo Hotel which is now owned by Government of Sri Lanka however in a filing to Colombo Stock Exchange (CSE) said that the Co-Founder of the bankrupted Kashmi - Sanjiv Alles had now landed as a Director on the Hotel Developers Lanka (Owners of Colombo Hilton).
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