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AI News July 06, 2026 12:02 PM
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Quick-fashion delivery startup Klydo has suspended its consumer-facing operations and is pivoting to a new business direction less than a year after entering the market. The company has stopped accepting new orders and informed users that its app will remain accessible for a limited period to support order history, customer service and related functions.

Klydo said in a notice on its platform that it had suspended its existing consumer offering and was developing a new product strategy informed by lessons learned in its first phase of operations. The company said the move was a step towards a "sharper product vision" and not a complete shutdown.

Klydo was founded in September 2025 by ex-Udaan executives Pradeep Yadav and Ankit Agarwal and was a Gen-Z fashion marketplace before it moved into quick commerce. Bengaluru-based startup had promised to deliver fashion items, footwear, accessories, home decor and gifting products within 15 to 30 minutes.

Also read: Myntra, Gen Z and the new fashion funnel: Where content meets community, culture meets commerce

The company had raised around $2 million in seed funding from K2 Capital Management and Veltis Capital to build out operations. Entrackr said Klydo had also looked at raising a larger $11-12 million round of funding earlier this year, but it apparently did not happen.

Klydo’s departure underscores the difficulties of the young segment of fast fashion delivery. The startup is the second player in the category to shut down in a year after Blip, another rapid-fashion delivery platform, went out of business in July 2025.

That setback hasn't cooled investor interest in the space. Recently, quick-fashion delivery startups including Slikk, Zilo and Knot have raised funding to scale their businesses, while Myntra has continued to scale its rapid-delivery service, Myntra Now, across multiple cities.

Klydo’s move also comes amid broader turmoil in the fashion-tech ecosystem. According to multiple reports several fashion startups have struggled to carve out a sustainable growth path in the last few years. Startups such as Virgio and Fashinza had previously made significant pivots after facing challenges in gaining desired traction.