Fast-fashion startup Virgio, founded by former Myntra chief, plans to shut down its operations less than a year after raising funds at a valuation of over $160 million, according to two investor sources familiar with the matter. The startup is downplaying the situation, insisting that it’s pivoting.

“The fast fashion brand that you have come to love is no longer available,” Virgio says on its website. Amar Nagaram, founder and chief executive of Virgio, wrote in a peculiarly-worded LinkedIn post: “Never thought that we’d come to these crossroads in exactly a year of launch of Virgio,” and called the move a “turning point” for the startup.

On Monday, Virgio insisted that it was pivoting to “sustainable clothing” and that it had found fast-fashion to be “harmful.”

Virgio raised a $37 million Series A funding from investors including Prosus Ventures, Accel and Alpha Wave Global in December last year. That round valued it at $161 million, the startup said.

Nagaram didn’t respond to a request for comment Saturday evening.

Virgio’s thesis was that as consumer fashion tastes evolve, many are finding current market options inadequate. The startup sought to refine its design, manufacturing, and procurement procedures to cater more promptly to Gen Z and older millennials. Virgio’s catalogue featured an expansive choice across casual, festive, and traditional categories, with fresh additions weekly.

It had fewer than 30,000 daily active users, according to mobile insight platform SensorTower, whose data an industry executive shared with TechCrunch.

Source @TechCrunch