Cudoni Collapses 3 Months After eBay Invests in Company

London-based Cudoni notified users today that it has made the “difficult decision” to shut down due to the “rising cost of living and economic crisis.”

In a statement on the company’s website, the company said:“We thank all of our clients and valued customers for supporting our growth journey, and we could not be more proud of what we have achieved together.”

“However, the market and the world has seen unprecedented change and the rising cost of living and economic crisis have been difficult to ride out for every start-up, not just ourselves.

“We have explored every option available, but sadly in the current climate, it is impossible for CUDONI to continue. From today, we will no longer be accepting consignment items, and will begin the process of shipping all items back to their owners.”

This news comes barely three months after the platform announced it had raised £7.5 million ($9.2 million) from backers in a Series B round, which included funding from eBay’s new Venture Capital arm.

Founded in 2017, Cudoni was one of the many start-ups aiming to capitalize on the rapidly expanding market for secondhand fashion, which is what attracted eBay to the company.

“It is an outstanding vote of confidence in the brand and our ambitions, to receive investment from recommerce pioneer, eBay, during what has been an incredibly tough year for the consumer sector,” said founder and chief executive, James Harford-Tyrer, in a statement in January.

Cudoni – The End

But the dream seems to have come to a crashing end as an administrator has been hired to seek a buyer for the company, if possible. Furthermore, Cudoni reportedly has already released 30 of its 79 member staff and is working to return consignments to customers.

The quick demise of Cudoni since it received its latest cash infusion is a little surprising as the £7.5 million ($9.2 million) raised in January is slightly over half what the company raised since 2017. In total, Cudoni had raised £14.1 million.

Cudoni has provided its users with a frequently asked questions (FAQ) section that outlines the procedures for buyers and sellers during this winding down process.

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