Vietnamese fitness startup WeFit files for bankruptcy

WeWow, a Vietnamese lifestyle platform that offers a ClassPass-like service called WeFit, has filed for bankruptcy as it runs out of cash amid the Covid-19 pandemic.

The WeFit team / Photo credit: WeFit

In an announcement to its customers, a copy of which was published by local media, WeWow said it will be closing down all of its services, including WeFit, WeFit Point, WeFit Pago, and WeJoy. “Our working capital is completely depleted. Therefore, we are unable to maintain our business and products,” the company said in its statement.

WeWow noted that it would accommodate customers who had bookings until May 10 by working with a third party.

WeFit is an app that allows its users to subscribe to fitness and beauty packages in over 1,000 locations in Hanoi and Ho Chi Minh City. It’s similar to US-based ClassPass, which announced last month that it was laying off or furloughing more than 50% of its staff, saying that the pandemic had affected about 95% of its revenue.

WeFit most recently raised funding in January last year, securing US$1 million in a pre-series A round from CyberAgent Capital and other VC firms in the region. At the time, WeFit said it handled around 150,000 bookings per month.

Toward the end of 2019 up to the start of 2020, however, WeFit was sued by a number of gyms and spas due to a policy change that reduced the number of sessions per subscription. It was also reported earlier this year that the startup was piling up debt.

In February, WeFit founder and CEO Nguyen Khoi stepped down from his role and was replaced by deputy CEO Nguyen Hai Dang.

WeFit is the latest startup in the region that had failed to survive the fallout due to Covid-19.

Last week, Indonesian budget hotel firm Airy said it would permanently cease operations by the end of the month. Food logistics startup Stoqo has also recently announced its shutdown.