Update: Virgio founder Amar Nagaram clarified that the company isn’t shutting down but making a pivot instead. In a media statement, Nagaram said that the company is pivoting from fast fashion to sustainable clothing.
Original story:
Fashion platform Virgio, launched by former Myntra CEO Amar Nagaram, has shut down its operations after a year of the launch. This is quite surprising as the company closed a $37 million round in December last year.
“Never thought that we’d come to these crossroads in exactly a year after the launch of VIRGIO. We are overwhelmed with gratitude as we reflect on the incredible journey we’ve shared with you over the past year,” said Nagaram in a LinkedIn post.
Nagaram, however, did not further disclose the reason behind the shutdown. Entrackr has reached out to Virgio for comment.
The company was backed by Prosus Ventures, Alpha Wave Partner, and Accel Partners during its Series A round in which it was valued at around $160 million.
Besides the VC firms, Bhavish Aggarwal, Sri Harsha Majety, Kunal Shah, Vidit Atrey, and Mekin Maheshwari also invested in the company.
“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,” added Nagaram.
Virgio used to connect designers and manufacturers to create a fashion ecosystem. The firm was offering casual, partywear, loungewear, sportswear, and ethnic clothing for both Men and Women. The Bengaluru-based company also opened its platform to consumers and its app was downloaded less than 1 million (8 lakh), according to data sourced from SensorTower.
According to data intelligence platform TheKredible, Virgio founder Nagaram holds around 52% share in the company followed by Accel and Prosus which own 16.35% and 6.25% respectively. Myntra and Cult.fit co-founder Mukesh Bansal is also a significant stakeholder in the company. Visit TheKredible, for the complete shareholding pattern.
While the Indian startup ecosystem has already seen more than 15,000 layoffs across segments, there were half a dozen shut downs. This is the first e-commerce company to shut its operations after a year of launch that too after raising more than $37 million in funding.
Update (10:45 am IST, October 9: This article has been updated after an explanation from the founder.)
