Fashinza, Virgio to return majority capital after pivots

economictimes.indiatimes.com:

startups — Fashinza and Virgio — backed by the likes of Accel and Alpha Wave have initiated a process to return most of the capital they had raised, after a change in their business models, people aware of the matter said.

Both had failed to find traction in the original business plans for which they had raised the funds and so are now returning part of the money, the people said.

Elevate Your Tech Prowess with High-Value Skill Courses

This comes after a record-breaking funding cycle through 2021 and parts of 2022 before investors across the globe turned cautious while allocating capital.

Gurugram-based Fashinza — a B2B fashion startup which was last valued at around $300 million — is returning capital to investors and is trying to become a “manufacturing startup” in the same space. In doing so, the company will also see a reduction in its valuations, the people said. Fashinza cofounder and chief executive Pawan Gupta confirmed the development to ET.

Former Myntra CEO Amar Nagaram’s fashion venture Virgio, which raised close to $40 million in multiple tranches, has also begun the process of returning a part of the remaining capital to investors, after turning the focus to circular fashion, which promotes sustainable practices like recycling, upcycling and reducing waste in the fashion industry. Virgio