Indonesian fashion e-commerce app LYKE is shutting down its service.
In a press statement, the company said that the majority of the startup’s employees will be joining Chinese fashion and lifestyle e-commerce startup JollyChic, which had just entered the Indonesian market last year.
The company has also encouraged users to download the JollyChic app.
LYKE CEO Bastian Purrer told Tech In Asia Indonesia that the company was struggling to run its operations based on the revenue generated from sales, despite having secured 1.6 million users.
He also cited the popularity of bank transfer as a payment method as one the reasons for the shutdown, as bank transfers are known to be relatively costly for e-commerce platforms to maintain.
“I learned that timing is very important in building a startup,” he said.
He also said that while the company’s marketing and operations team are set to join JollyChic, its developer team will remain with LYKE during the transition period.
It is also committed to finalise all transactions with vendors by March 5.
Launched in February 2016, LYKE is an aggregator app for fashion and beauty stores that enables users to discovers products from various online stores in just one app.
It also offers personalised service that allows users to follow their favourite shops and brands.
In August 2016, the company raised a “close to” US$4 million Series A funding round led by German VC fund Holtzbrinck Ventures with participation of Singapore-based APACIG.
It has recently appointed Indonesian pop star Agnez Mo as Chief Creative Officer and Co-Founder.
Fashion e-commerce in Indonesia has always been known as a very competitive market.
Image Credit: LYKE