A new chapter in the "novel" of tech layoffs in Argentina emerges from the trendy e-commerce site. Dafiti. This time, in truth, it is a group that, although strong in the region, abandons the local market and grows the exodus of foreign brands that prefer to "close the blind".
The company officially communicated the decision to iProfesional: "We regret to confirm that Dafiti Argentina will be closed. Sales will continue until September 18."
"To maintain the sustainability of our business and continue to grow as the leading online fashion and lifestyle destination in our markets, Dafiti regularly reviews and readjusts costs across our company. Unfortunately, these changes have recently affected our business in Argentina and we confirm the announcement of an orderly liquidation of Dafiti Argentina in the coming months," company sources in Latin America told this media.
The reasons have to do above all with the "prolonged period of high inflation in Argentina, arbitrary import controls and the exodus of international brands and other suppliers who refuse to work directly with Argentine entities. It has seriously tested our ability to operate the business."
The sources confirmed that during the 2020-2022 period, Dafiti Argentina experienced "worsening profitability" and a "negative Normalized Free Cash Flow." In addition, they see "no signs of improving prospects, given the problems facing the fashion and retail sector globally, combined with the current macroeconomic environment in Argentina, which shows no signs of slowing down."
"This is a very difficult decision and, in the coming weeks, we will focus on how best to meet our obligations to staff, business partners and other stakeholders. We would like to thank all our employees, business partners and other stakeholders for their commitment over the years," they closed from the fashion e-commerce company, which at the same time confirms that it has "an ambitious strategy for the future success" of its business in Latin America, in Brazil, Chile and Colombia.
Dafiti closes its doors in Argentina
Dafiti facilities in Garín
Dafiti is an online platform for discounts and purchases of clothing, footwear and accessories, as well as beauty products and perfumes. As an anonymous source told iProfessional earlier this week, it had a local operation of about 80 people.
The platform was founded in 2011 in Brazil, exclusively to sell footwear, but later expanded to other segments and also opened operations in Argentina, Chile and Colombia. It received investments from the European incubator Internet rocket to become the largest fashion e-commerce platform in the region. Subsequently, it received further financial backing from investors such as JP Morgan, AB Kinnevik, Quadrant Capital Advisors and the World Bank's IFC.
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