Sorabel Closes Operation End of July 2020

Startups E-commerce Sorabel fashion is certain to cease operations effective as of July 30, 2020. This news adds the ranks of startups that went out of business due to the ongoing COVID-19 pandemic.

In a copy of the letter that DailySocial The receipt, which Sorabel's leadership sent to employees, explained that the company had done its best to save the company. But with a heavy heart have to take the path of liquidation.

Liquidation is the dissolution of the company by the liquidator, as well as settlement by means of the sale of company assets, collection of receivables, settlement of debts, and settlement of remaining assets or debts to the parties involved.

"Due to the liquidation process taken, the employment relationship must end at this stage for everyone without exception, to be precise effective on July 30, 2020. I am sure that no one expects this to happen," the letter wrote.

Management ensures that employee rights arising from this liquidation, including holiday allowances will still be recognized as part of the company's debt. It is also ensured that the company will comply with the liquidation process and the liquidator's decision in accordance with the provisions of the law and legislation.

Therefore, employees are expected to return all of the company's assets (for resale) and are processed by the liquidator. Management also guarantees that with a network of more than 10 investors who own more than 100 companies, they will be assisted in finding replacement jobs.

“Perhaps this is the end of our journey together with Sorabel. I hope my friends can still remember the good memories that we have spent together here. [..] The company would like to thank you profusely for fighting together until this point,” he concluded.

Before officially closing, the Sorabel business unit in the Philippines under the Yabel brand has announced its closure in the Philippines social media accounts them as of last February.

Sorabel Travel

The company started itself precisely in 2014 with brand Sale Stock, before rebrand be Sorabel. It has been a long journey with various innovations that are claimed to have succeeded in introducing themselves to consumers who have never shopped online, for example through the “Try First and then Pay” feature.

The company also took efficiency steps by reducing the number of employees about 200 people in 2016. Despite this decision, it was soon followed by a Series B+ fundraising led by Meranti ASEAN Growth Fund. According to iPrice version as of the second quarter of 2020 revealed the number of company employees as many as 375 people.

The Co-Founder of Sorabel Lingga Madu once said that the company's business model is the healthiest compared to players E-commerce in Indonesia, even in 2018 it was claimed almost break even (break even point/BEP) and ready to make a profit. It aligns economic units Sorabel with players E-commerce overseas fashion such as Asos and Revolve.

Sorabel's journey is getting more aggressive after rebranding at the beginning of last year. Company start launch expansion to realize its ambition to provide access to quality fashion and affordable prices for “next billion users." Yabel was one of the company's ambitions at the time, even boasting to enter the Middle East and the United Arab Emirates.

In the last interview with DailySocial, it was stated that the company was in the process of processing series C funding, which was followed by Kejora Ventures and Core Ventures. Several other names of investors who participated in the previous round include OpenSpace, Shift, Gobi Partners, MNC Media Investment, SMDV, Golden Equator Capital, and Convergence Ventures.