AI fashion stylist startup ALLE, backed by Elevation Capital, has officially shut down operations after failing to find product-market fit and a viable business model. The decision was made in October 2025 after six failed pivot attempts over 2.5 years, co-founder Prateek Agarwal said.
Founded in January 2023 by former Meesho executives, ALLE offers users an AI-powered personal stylist to find clothing ideas from over 1,000 brands. The startup claimed to serve 1.5 million Gen Z users, but its mobile app was removed from app stores months before the shutdown.
ALLE raised $3 million in seed funding, becoming the first startup to announce a shutdown in 2026. While interest in well-established AI ventures continues, ALLE's closure reflects a broader trend as investors become wary of AI startups without strong differentiation or sustainable unit economics.
