Former Myntra CEO Amar Nagaram’s fashion platform, Virgio, has unexpectedly ceased its operations just one year after its launch, despite having successfully secured a $37 million funding round in December of the previous 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.
However, Nagaram refrained from providing any additional information regarding the shutdown’s cause.
During its Series A round, the company secured support from Prosus Ventures, Alpha Wave Partner, and Accel Partners, resulting in a valuation of approximately $160 million.
In addition to the VC firms, Bhavish Aggarwal, Sri Harsha Majety, Kunal Shah, Vidit Atrey, and Mekin Maheshwari were also among the investors 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 once served as a bridge between designers and manufacturers, facilitating the creation of a comprehensive fashion ecosystem. The Bengaluru-based company provided a diverse range of clothing options, including casual, partywear, loungewear, sportswear, and ethnic attire for both men and women. Furthermore, Virgio expanded its reach by opening its platform to consumers, with its app garnering less than 1 million (8 lakh) downloads, as per data obtained from SensorTower.
According to data from TheKredible, the Founder of Virgio, Nagaram, retains approximately 52% ownership in the company, while Accel and Prosus hold 16.35% and 6.25% stakes, respectively. Notably, Mukesh Bansal, Co-Founder of Myntra and Cult.fit, also holds a significant stake in the company.
In the Indian startup landscape, there have already been over 15,000 job layoffs across various sectors, accompanied by the closure of six companies. Remarkably, this e-commerce company stands out as the first to cease its operations just one year after its launch, despite having raised over $37 million in funding.