Fashinza and Virgio, both funded by Accel and Alpha Wave, are returning capital after failed business pivots. According to sources, “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.”
Fashinza, a B2B fashion startup, is shifting its focus to manufacturing, resulting in a reduction in valuations.
Fashinza CEO Pawan Gupta confirmed the move, stating, “The founders, team and the board felt that this was the right direction for a company like ours to take.” Virgio, led by former Myntra CEO Amar Nagaram, is transitioning to circular fashion, prompting a return of capital to investors.
Gupta further explained, “To take the new path to become sustainable, we had to reset the valuation. It is a pivot that we’re making.” Both startups are adjusting their strategies to align with market demands.
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