What is the controversy behind FashionValet’s founders and why is the Malaysian firm under probe?

KUALA LUMPUR: Malaysia’s fashion e-commerce platform FashionValet has come under intense scrutiny of late amid allegations of funds mismanagement by its co-founders. 

The spotlight is on entrepreneur Vivy Yusof and her husband, Mr Fadzarudin Shah Anuar, who founded the firm in 2010. Amid a probe by the authorities into the firm’s books, netizens have also volleyed criticisms against Ms Vivy for her alleged spending habits and lavish lifestyle. 

The Ministry of Finance said in a written parliamentary reply on Oct 28 that two government-linked firms — Khazanah Nasional and Permodalan Nasional Berhad (PNB) — had sold their minority investments in FashionValet at the end of 2023 for RM3.1 million (US$707,400). 

This marked a significant loss from the initial RM47 million investments in 2018, prompting calls for investigations as it involves public money. 

On Thursday (Nov 7), the Malaysian Anti-Corruption Commission (MACC) confirmed that it found several suspicious transactions made to a company linked to the founding partner of FashionValet from 2018 until last year, though it did not specify who. 

“We looked at the flow of financial sources and the reasons for entry and where the money is spent to see if there are elements of corruption or other offences involving fraud. 

“However, we believe that there are some investments that have been misused in this matter, which we are identifying,” MACC’s chief commissioner Azam Baki told local media.

CNA takes a closer look at the controversy surrounding FashionValet amid what appears to be a fall from grace for its high-profile co-founders. 

Established in 2010 by Ms Vivy and her husband, FashionValet is a curated e-commerce platform retailing stylish yet modest fashion designed