Fast-Fashion startup Virgio, valued at $160Mn in last fundraise, announces abrupt pivot, a year after launch
When it had launched last year, it was expected that fashion platform Virgio will have a long run and make a name for itself in the Indian fashion ecosystem. Yet, just a year after its launch, the fast-fashion startup finds itself at the end of its rope – according to media reports, the fashion platform is shutting down its operations. This is surprising – while recent times have often featured more than a fair share of startup layoffs across various sectors, instances of e-commerce startups shuttering operations within a year of their launch, especially after securing substantial funding, are relatively rare.
What makes Virgio’s closure even more baffling is the company’s impressive valuation and the substantial funding it had secured. In December 2022, Virgio successfully raised $37 million in a Series A funding round. This funding round valued the startup at an impressive $161 million, something that suggested strong investor confidence in the young platform. Virgio was co-founded by Amar Nagaram, a former CEO at Myntra with noted pedigree for the fashion ecommerce space.
Furthermore, the fast-fashion upstart managed to cultivate a community of users, numbering over 100,000 individuals and positioned itself in the fiercely competitive fast-fashion market, with a focus on meeting the ever-evolving fashion preferences of Gen Z and older millennials. The company boasts of the backing of high-profile names such as Prosus Ventures, Alpha Wave Partner, and Accel Partners (all of whom participated in the Series A funding round). And since its inception, the startup aimed to streamline its design, manufacturing, and procurement processes to offer an extensive range of clothing, including casual wear, party attire, loungewear, sportswear, and ethnic garments for both men and women. With weekly additions to – and refreshing of – its catalog, Virgio ensured a continuous influx of fresh and trendy products for its customers.
Despite its promising approach and enthusiastic community, Virgio faced difficulties in gaining substantial traction in a crowded market. Data from mobile insight platform SensorTower revealed that the platform had fewer than 30,000 daily active users. This limited user base may have contributed to the operational challenges that ultimately led to the company’s shutdown. Virgio’s founder, Amar Nagaram, took to LinkedIn to share the news of the company’s shutdown. In his cryptic post, Nagaram stated, “Never thought that we’d come to these crossroads in exactly a year after the launch of VIRGIO,” referring to the one-year mark since the platform’s launch.
“Never thought that we’d come to these crossroads in exactly a year of launch of VIRGIO. We are overwhelmed with gratitude as we reflect on the incredible journey we’ve shared with you over the past year. With over 100,000 passionate individuals like you, we’ve forged a vibrant community that has supported us at every step. Your enthusiasm, feedback, and loyalty have been instrumental in our journey, and we cannot thank you enough. However, today marks a significant turning point. Thank you for being a part of our community, we loved being a part of your wardrobe,” Nagaram posted on LinkedIn.
