Former Myntra CEO's Fashion Startup Virgio Pivots A Year After Raising $37 Mn

Former Myntra Chief Amar Nagaram’s Fashion Startup Virgio Closes $37 Mn Series A Round

SUMMARY

On October 7, Nagaram wrote on LinkedIn that the startup, which was founded just a year ago, has reached a 'crossroads'

Virgio will now manufacture clothes with naturally available materials like cotton and not rely on human-made fabric like polyester

The startup raised $37 Mn in its Series A funding round led by Prosus, Accel and Alpha Wave last December

Virgio, a fashion ecommerce set up by former Myntra CEO Amar Nagaram, will pivot from fast fashion to sustainable fashion, according to a LinkedIn post by the ex-Myntra executive.

On October 7, Nagaram wrote on LinkedIn that the startup, which was founded just a year ago, has reached a ‘crossroads’. His comments were appended with a screenshot of the company’s website which said “The fast fashion brand you have come to love is no longer available.”

In a press release shared today, Amar Nagaram, said, “While fast fashion is agile, trendy and caters to the growing needs of the young blood in India, it also promotes over production, over consumption. Fast fashion companies use harmful fabrics and exploit labour to cut corners on pricing and quality fuelling the market with what will be sent to landfills. It’s a global crisis and we all are witnessing it. That’s why we’ve made a conscious choice to move our entire efforts to build a circular fashion brand.”

The startup does not need additional capital for its pivot. Most of the $37 Mn that Virgio raised last December in Series A remains in the company’s bank account and gives the company a cash runway of three years, per Nagaram.

Prosus Ventures, Accel and Alpha Wave had led the Series A round.

Founded in 2022, Virgio used tech to design, manufacture and automate purchasing processes and streamline the entire fashion lifecycle. After the pivot, Virgio will manufacture clothes with naturally available materials like cotton and not rely on human-made fabric like polyester.

“That way our clothes can be used for longer,” Nagaram said, adding that Virgio will be a part of a circular economy in fashion.

The pivot would also allow the startup to appeal to the more environmentally aware GenZ, per Nagaram. He added that now the GenZ are spending more money and thus can afford sustainable fashion.

Pivots have been a long-standing trend in the startup world, with companies shifting lanes for several reasons. The most important factor behind a pivot is the product-market fit, or the lack thereof. In contrast, others include changing market dynamics, shifts in customer preferences, or the emergence of new technologies.