Vietnam’s e-commerce startup Leflair declares bankruptcy after facing capital crunch

Leflair, a premium e-commerce platform in Vietnam, has filed for bankruptcy,  according to DealstreetAsia.

The startup owes about US$2 million to 500 partners, according to several reports.

In February this year, Leflair, which deals in premium products, had  announced its decision to cease the local operations due to the fierce competition in the market.

In a latter to merchants, it had said said: “The changes in the investment landscape for startups have made Leflair’s current business strategy difficult to pursue. Under the capital crunch and requirements to cut costs, we had to make the tough decision to cease our operations in Vietnam.”

The company has revealed that it had suspended local operations due to “changes in the investment landscape for startups which caused operational inefficiencies”.

In 2018, the startup had raised US$7 million from private equity firm Belt Road Capital Management and South Korean retailer GS Shop in 2018.

Uber considers laying off up to 700 employees in India

Ride-hailing giant Uber is expected to lay off roughly 500 to 700 of its employees in India, according to TechInAsia.

This speculation comes in as many companies are forced to take harsh measures due to the ongoing pandemic, which has hit the region’s economy with a deathblow.

Also Read: Google SEAs MD on why women should be confident, speak up and contribute

In a recent article by The Report, CEO Dara Khosrowshahi cautioned its employees about the harsh measures Uber might take to ensure survival.

“Hope is not a strategy. We’re not going to avoid hard decisions,” he said.

Uber will most likely confirm the news and announce the layoffs when the lockdown is lifted, one of the sources close to the matter said.

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Image Credit:  Benedikt Geyer

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