JAKARTA (TheInsiderStories) – Indonesia fashion e-commerce platform, Sorabel has confirmed to be shutting down by the end of July after the businesses affected by the COVID-19. Before announcing the closure, the company’ co-founder and CEO, Jeffrey Yuwono, had resigned in June.
Other co-founders, Lingga Madu and Ariza Novianti, left the company earlier last year. He acknowledged their business was devastated by pandemic, and his office no longer had sufficient capital reserves to survive during the pandemic. Currently, Sorabel is in preparation for the liquidation process, he adds.
Sorabel is a new brand in fashion e-commerce since 2019. Formerly the startup known as Sale Stock. The company describes itself as a fashion e-commerce store with produces and sells its own private label clothing.
In early May 2019, the startup has received the Pre Series C from some investors, one of them is Kejora Ventures, to tighten the company’ cash position and to intensify promotion of rebranding activities.
In the mid 2017, Sale Stock receives Series B funding from Singapore-based Gobi Partners, Golden Equator Capital, Alpha JWC Ventures, Convergence Ventures, MNC Group, Korea Investmet Partners, and SMDV worth of Rp360 billion (US$24.83 million). In 2018, they claimed to achieve the break even point. Then they involved in pre-Series C round, including OpenSpace Ventures, which joined the Series B round followed other investors.
At that year, said Madu, the rebranding went well. Using a new innovation called “Coba Dulu Baru Bayar” (Try Newer Then), the consumer try on the products first and only have to pay for those fit their size or return the unsuitable ones without additional cost.
Sorabel, sells its own fashion label for women and refers to its female fans as “Sistas”. The platform is one of the biggest e-commerce startup that leading fashion industry in Indonesia. But, the pandemic was hampered their businesses and start to laid offer 100 staffs since the beginning of this year.
Revenues in the fashion segment is projected to reach $8.5 billion in thir year 2020. Revenues are expected to show an annual growth rate of 15.9 percent compared to last year and produce a projected market volume of $15.38 billion in 2024.
Written by Editorial Staff, Email: firstname.lastname@example.org