Fast-fashion startup Virgio, once valued at over $160 million, is set to cease its operations just under a year after securing substantial funding, sources close to the investors have revealed. The decision, which took many by surprise, has raised questions about the future of the brand.
A Pivotal Moment for Virgio
Virgio’s official website now carries a message that reads, “The fast fashion brand that you have come to love is no longer available,” signalling a significant change in direction. Amar Nagaram, the founder and CEO of Virgio, expressed his thoughts on the matter in a unique LinkedIn post. He wrote, “Never thought that we’d come to these crossroads in exactly a year of launch of Virgio,” referring to the move as a “turning point” for the startup.
A Shift Towards Sustainability
Virgio’s sudden shift in strategy is now centred around “sustainable clothing,” with the company openly stating that it has recognized the harmful impact of fast-fashion practices.
Valuation and Funding History
Virgio had raised an impressive $37 million in a Series A funding round in December of the previous year. This round attracted investors like Prosus Ventures, Accel, and Alpha Wave Global and led to a valuation of $161 million for the startup. However, it appears that this substantial investment was not enough to sustain the business.
Founder’s Silence
Despite inquiries about the situation, Amar Nagaram has not issued any official statements or comments regarding Virgio’s decision to shut down its operations.
Virgio’s Vision and Challenges
Virgio’s initial vision was rooted in the belief that evolving consumer fashion tastes demanded a new approach. The startup aimed to revolutionise design, manufacturing, and procurement processes to better cater to the demands of Gen Z and older millennials. Virgio boasted a diverse catalogue, spanning casual, festive, and traditional wear, with frequent updates to keep up with evolving trends.
User Base and Industry Insights
Despite its promising beginnings, Virgio struggled to attract and retain a substantial user base, with fewer than 30,000 daily active users. This insight was gleaned from data provided by mobile insight platform SensorTower, as shared by an industry executive with TechCrunch.
In an unexpected turn of events, Virgio’s journey as a fast-fashion brand is coming to an end, as it makes a bold pivot toward sustainability. The startup’s abrupt decision serves as a reminder of the volatile nature of the fashion industry and the growing demand for eco-friendly alternatives among today’s consumers.
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