Sorabel’s fashion e-commerce startup will permanently shut down effective as of July 30, 2020. This one adds up to the list of startups out of business due to the impact of the co-19 pandemic.
In a copy of the letter received by DailySocial, sent by Sorabel’s lead to employees, it is said that the company has done its best to save the business. However, with a heavy heart must take the liquidation route.
Liquidation is the a company dismissal by a liquidator, as well as the settlement by selling company assets, collecting receivables, paying off debts, and settling the remaining assets or debts to the involved parties .
“Through the liquidation process, the employment relationship should end as of now for everyone without exception, effective on July 30, 2020. I am sure that no one expects this to happen,” the letter said.
Management ensures that employee rights in connection with this liquidation, including holiday allowances, will be complied as part of the company’s debt. It is also certain, the company will be subject to the liquidation process and the liquidator’s decision in accordance with the provisions of law and legislation.
Therefore, employees are expected to return all company assets (for resale) and process them by the liquidator. The management also guarantees with a network of more than 10 investors and over 100 companies, they will be fully supported to get a replacement job.
“Maybe this is the end of our journey with Sorabel. I hope our friends can keep in mind the good memory we have shared together here. […] The company would like to thank as much as possible for fighting together up to this point,” he concluded.
Before its official shutdown, Sorabel’s business unit in the Philippines under the Yabel brand announced its closure on their social media accounts as of February.
Sorabel’s journey
The company was founded in 2014 with the brand Sale Stock, before rebranding into Sorabel. The journey is quite long with a variety of succeeding innovations in introducing themselves to consumers who have never shopped online, one is through the feature “Try It First and Pay.”
The company also took efficiency steps by reducing around 200 employees in 2016. Despite the decision, it was not long for them to raise Series B + funding led by Meranti ASEAN Growth Fund. Based on iPrice’s data, the company has around 375 employees per second quarter of 2020.
Sorabel’s Co-Founder, Lingga Madu once said that their company’s business model is the healthiest compared to other e-commerce players in Indonesia, even claimed to have reached break-even point (BEP) in 2018 and is ready to make a profit. He aligned Sorabel’s economics unit with overseas e-commerce fashion players such as Asos and Revolve.
Sorabel’s journey became more aggressive after rebranding in early last year. The company started expanding to realize its ambition to provide access to quality fashion and affordable prices for “next billion users.” Yabel was a proof of the company’s ambitions, they even planning to enter the Middle East and the United Arab Emirates area.
As per the last interview with DailySocial, the company was processing series C funding, which was followed by Kejora Ventures and Ncore Ventures. Some other previous investors also participated, such as OpenSpace, Shift, Gobi Partners, MNC Media Investment, SMDV, Golden Equator Capital, and Convergence Ventures.
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Original article is in Indonesian, translated by Kristin Siagian
