Pangaia’s Net Losses Surpassed $50 Million in 2022

Pangaia, as soon as certainly one of trend’s hottest start-ups, noticed its internet loss mount to $50.4 million in 2022, in accordance with public filings.

Gross sales on the firm, whose brightly colored tracksuits surged in popularity in the course of the pandemic, fell 42 p.c year-on-year to $37.1 million, extending a slide from a 2020 peak of $76 million.

Pangaia spun out of influencer-turned-venture capitalist Miroslava Duma’s materials innovation incubator Future Tech Labs in 2019, with its explosive early success attracting backing from a slew of high-profile names, together with enterprise funds backed by Will Smith and Leonardo DiCaprio.

However the firm has struggled to maintain momentum or show out its broader vision of utilizing its model as a advertising platform to promote climate-friendly materials improvements to the remainder of the business.

To make sure, Pangaia’s newest public numbers don’t totally replicate the influence of restructuring efforts over the past 18 months, which the corporate has beforehand stated put it on monitor to return to profitability in 2023.

Amongst different measures, it laid off a third of its workforce final Could and shuttered its warehouse within the Netherlands in October. Efforts to streamline its focus had been already paying off within the second half of 2022 with a marked discount in losses, in accordance with Pangaia’s public filings.

However the firm’s outlook stays unsure amid a difficult financial setting. Former guide and Ssense CMO Krishna Nikhil stepped down as the company’s chief executive in October after 18 months within the position. Pangaia has stated he stays an advisor to the corporate and has been changed by co-founder and chief govt Nathalie Longuet.

“With our ongoing dedication to constructing our model whereas controlling our price base, we stay assured that Pangaia is poised for fulfillment,” the corporate stated in an emailed assertion.

Be taught extra:

Can Pangaia Be More Than a Loungewear Brand?

The corporate stays targeted on its ambition to leverage its model to construct a fabric science enterprise.