AI Fashion Startup Alle Shuts Down After 2.5 Years, Founder Reflects on the Startup Journey

Indian AI-first fashion startup Alle has officially shut down after operating for around two and a half years. The update was shared by co-founder Prateek Agarwal in a LinkedIn post, where he confirmed that the decision to close the company was taken in October 2025 after multiple attempts to find a sustainable product-market fit and business model.

The announcement brings an end to one of the few consumer AI startups from India that managed to reach millions of users, even though it could not convert that traction into a long-term, scalable business.

Why Alle Decided to Shut Down

According to Agarwal, the core reason behind Alle’s shutdown was the inability to align product-market fit with a viable revenue model. Over its journey, the company pivoted six times, each pivot driven by the belief that the next version would unlock a larger opportunity.

However, after repeated attempts, the founders concluded that continuing further would come at a high opportunity cost for the team. Rather than pushing through another uncertain pivot, the leadership chose to step back and bring the company to a close.

Agarwal noted that while there were several learnings from working at the intersection of consumer AI and fashion, the immediate focus of his post was to acknowledge the people who contributed to the journey.

Founders, Team, and Investor Support

In his message, Agarwal expressed deep gratitude towards his co-founders Harshit and Pavan, highlighting their consistency and adaptability through every phase of the startup. He emphasised their growth mindset and willingness to keep building despite uncertainty.

He also acknowledged Alle’s core team members, including early contributors who stayed through all the pivots, as well as those who joined later and took strong ownership of the product and user experience.

Special mention was made of investor Mukul, who supported the company throughout its journey, offering both strategic pressure and patience, qualities often critical for early-stage startups. Agarwal also thanked Vidit for providing timely advice and confidence during key decision-making moments.

A Rare AI-First Consumer Experience in India

Despite shutting down, Alle’s founders see value in what the company achieved. The startup successfully shipped an AI-first consumer product at a time when the space was still evolving in India. According to Agarwal, only a small number of teams in the country have had the experience of building and scaling such products to a mass audience.

He believes the learnings from Alle will continue to shape the careers of everyone involved, even if the impact is not immediately visible.

Looking Ahead Beyond Alle

While Alle as a company no longer exists, Agarwal shared confidence that its culture, working style, and collective spirit will live on through the people who built it. He also reflected on entrepreneurship as a deeply transformative journey, one that reshapes individuals through challenges, failures, and self-discovery.

The shutdown of Alle serves as a reminder that even well-built products with user traction may struggle without the right business model, and that closing down can sometimes be a thoughtful and responsible decision rather than a failure.