Fast-fashion startup Virgio, co-founded by the former Myntra chief, is reportedly considering shutting down its operations less than a year after securing funding at a valuation exceeding $160 million, as revealed by two anonymous investor sources familiar with the situation. Over the weekend, the company announced that its eponymous platform was “no longer available,” although on Monday, Virgio downplayed the situation and claimed to be undergoing a pivot.
On its website, Virgio stated, “The beloved fast fashion brand you’ve known is no longer accessible.” In a somewhat cryptic LinkedIn post, Amar Nagaram, the founder and CEO of Virgio, remarked, “I never anticipated we’d encounter these crossroads exactly one year after Virgio’s launch,” referring to the move as a “turning point” for the startup.
Despite investor concerns, Virgio asserted on Monday that it was transitioning towards “sustainable clothing” and had recognized the harmful effects of fast fashion. However, two investors, who requested anonymity, reported that they had received information indicating Virgio’s intention to wind down its operations.
Virgio had secured $37 million in Series A funding in December of the previous year, with investments from prominent firms such as Prosus Ventures, Accel, and Alpha Wave Global, which had valued the startup at $161 million.
As part of its mission, Virgio aimed to address the changing fashion preferences of consumers, particularly among Gen Z and older millennials. The startup had endeavored to streamline its design, manufacturing, and procurement processes to respond more rapidly to these evolving tastes. Virgio’s product range encompassed a wide selection of casual, festive, and traditional attire, with frequent additions to its offerings.
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