Vietnam-based, corporate-backed companies WeFit.vn and Leflair have filed for bankruptcy due to insolvency caused by coronavirus-associated lockdown, DealStreetAsia reported yesterday.
Fitness and personal care services provider WeFit was founded in 2016 under parent company Onaclover Tech, which revealed its insolvency in an April 30 memo to creditors and shareholders. Its closure emerged yesterday in an email message to its customers, which said the Covid-19 economic woe “has exhausted all of the company’s operating capital”.
The startup counted internet company CyberAgent as a backer, which had invested in a $1m pre-series A round in January 2019 alongside KBInvest and undisclosed individuals, having collected $155,000 from ESP Capital and Vietnam Innovative Startup Accelerator two years before.
Premium e-commerce platform operator Leflair likewise filed for bankruptcy last week having failed to meet its debt obligations, which came in the wake of suspending its operations in Vietnam in February citing “changes in the investment landscape for startups”.
Founded in 2015, Leflair’s platform provided upmarket fashion items. It had most recently raised a $7m series B round from home shopping service GS Shop and Belt Road Capital Management in January 2019, having previously received $5m from 500 Startups, AME Ventures, Caldera Pacific, Capital Management Group and angel investors.
