Fashion company Virgio, co-founded by former Myntra CEO Amar Nagaram, is making a pivot from fast fashion to sustainable clothing. The startup, which raised $37 million from investors including Prosus, Accel, Alpha Wave, and more, announced this shift after realizing the harmful environmental and social impacts of fast fashion.
Amar Nagaram explained that fast fashion often relies on harmful fabrics and exploits labor to reduce costs, leading to a throwaway culture. Virgio aims to change this by becoming a more sustainable company. Nagaram drew a comparison with Shein, a popular fast fashion brand, stating that Virgio’s goal is to become what Shein could have been if it had focused on sustainability.
For Virgio, sustainability means manufacturing clothing using naturally available materials like cotton rather than synthetic fabrics like polyester. This approach extends the lifespan of the clothing, promoting a circular economy in fashion. In a circular fashion economy, clothes are designed to last longer, and once they reach the end of their useful life, they are recycled, allowing their raw materials to be repurposed.
Amar Nagaram emphasized the shift toward sustainability as a response to changing consumer preferences, particularly among Gen Z consumers in China, who are increasingly looking for more sustainable clothing options. Virgio believes that this pivot is necessary for its future, even if it temporarily slows down its growth.
Despite the pivot, Virgio has a healthy financial position. Most of the $37 million it raised last year remains in the company’s bank account, providing it with a cash runway of three years.
Virgio is also supported by a notable list of angel investors, including Mukesh Bansal (Cult.fit co-founder), Kunal Shah (Cred founder), Binny Bansal (Flipkart co-founder), Bhavish Aggarwal (Ola co-founder), Vidit Aatrey (Meesho co-founder), Saif Ali Khan (angel investor), Sriharsha Majety (Swiggy co-founder), and others.
