Quick-fashion startup Virgio, based by former Myntra chief, plans to close down its operations lower than a 12 months after elevating funds at a valuation of over $160 million, in keeping with two investor sources accustomed to the matter. The startup is downplaying the state of affairs, insisting that it’s pivoting.
“The quick trend model that you’ve come to like is not obtainable,” Virgio says on its web site. Amar Nagaram, founder and chief government of Virgio, wrote in a peculiarly-worded LinkedIn post: “By no means thought that we’d come to those crossroads in precisely a 12 months of launch of Virgio,” and known as the transfer a “turning level” for the startup.
On Monday, Virgio insisted that it was pivoting to “sustainable clothes” and that it had discovered fast-fashion to be “dangerous.”
Virgio raised a $37 million Collection A funding from buyers together with Prosus Ventures, Accel and Alpha Wave World in December final 12 months. That spherical valued it at $161 million, the startup stated.
Nagaram didn’t reply to a request for remark Saturday night.
Virgio’s thesis was that as client trend tastes evolve, many are discovering present market choices insufficient. The startup sought to refine its design, manufacturing, and procurement procedures to cater extra promptly to Gen Z and older millennials. Virgio’s catalogue featured an expansive selection throughout informal, festive, and conventional classes, with contemporary additions weekly.
It had fewer than 30,000 every day energetic customers, in keeping with cellular perception platform SensorTower, whose knowledge an business government shared with TechCrunch.