Elevation Capital-backed AI Startup Alle shuts shop

Elevation Capital-backed AI fashion stylist startup Alle has shut down its operations. In a LinkedIn post, cofounder Prateek Agarwal said the decision to close the company was made in October 2025 after six unsuccessful attempts to change the business direction.

According to Agarwal, the startup was unable to find the right product–market fit or build a sustainable business model.

Read also- Atomgrid raises $7 million Pre-series A funding to build a global speciality chemicals platform

"Over the 2.5 years we spent building Alle, we pivoted six times, each time believing we were getting closer to a large enough opportunity. Eventually, we had to accept that the opportunity cost of everyone’s time outweighed another uncertain pivot," said Agarwal in the post.

For background, Alle offered users a personal “AI stylist” that helped them discover outfit ideas. Users interacted with a chatbot to browse fashion products from over 1,000 brands on a single platform.

The startup’s mobile app was taken down from the google Play Store and Apple App Store a few months ago. Alle had claimed it served more than 1.5 million Gen Z users and had a rapidly growing active user base. It had also partnered with warehouse management software company EASYECOM to grow its B2B business.

Founded in 2023 by ex-meesho executives Agarwal, Harshit Madan and Pavan Patil, Alle offered a conversational chatbot that worked as a personal “AI stylist,” helping users discover new outfit ideas.

Advertisment

Madan and Patil exited the startup in October 2025. After this, Patil rejoined Meesho as director of engineering in November.

A few months after it was founded, the Bengaluru-based startup raised $3 million in seed funding from Elevation Capital, Bharat Founders Fund, and The Singhal Children. It is still unclear whether any money was returned to investors.

With this closure, Alle became the first startup to shut down in 2026. However, it is not the first AI-focused startup to close due to lack of product–market fit and an unsustainable business model. In 2025, AI startups such as subtl.ai, CodeParrot, and Astra also shut down for similar reasons, along with difficulties in raising further funding.

Want to go deeper into the world of startups and entrepreneurship? Check out these categories on VIESTORIES:

Latest Business and Startup News: Discover Funding Trends and Stories Shaping Indian Startups.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Advertisment

Startup Stories: Discover inspiring tales of startups overcoming challenges, and achieving success.