Vietnam’s VC-backed fitness startup WeFit files for bankruptcy

Vietnam-based WeFit, a fitness startup modelled after ClassPass, has filed for bankruptcy after running out of cash in the wake of the COVID-19 pandemic.

WeFit announced its bankruptcy and termination of all services to its customers on May 11, saying the coronavirus crisis “has exhausted all of the company’s operating capital.”

Founded in 2016, WeFit had raised funding from investors including the Vietnam Innovative Startup Accelerator, ESP Capital, CyberAgent Capital and South Korea’s KBInvest.

WeFit’s parent company, ONACLOVER, said in an April 30 note that it was facing insolvency, and informed its creditors and shareholders to contact the Hanoi People’s Court for requests regarding their rights and interest.

Originally a service connecting users to gym facilities, the startup had later expanded into other health and beauty care services.

Troubles at the startup came to the fore in late 2019 as reports emerged of it having piled on debt. In February, the company’s deputy CEO Nguyen Hai Dang replaced its founder Nguyen Khoi as CEO. The challenges were exacerbated for WeFit as all gym and spa centres were forced to close during the COVID-19 lockdown.

Last week, DealStreetAsia reported that e-commerce startup Leflair also filed for bankruptcy after failing to pay its debt. Its two co-founders have joined local fashion retailer Maison as COO and CGO.

Leflair was backed by 500 Startups, Belt Road Capital Management and Caldera Pacfific, among others.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.