Indonesian fashion e-commerce app Lyke is shutting down, and is encouraging its users to transfer to the JollyChick app.

Lyke says most of its employees will be joining Chinese fashion and lifestyle e-commerce startup JollyChic, which entered the Indonesian market last year.

CEO Bastian Purrer says the company has been struggling to survive on its sales revenue despite having secured 1.6 million users.

He also says the popularity of bank transfers as a payment method has also contributed to the shutdown, as they are relatively costly for e-commerce platforms to maintain.

While the company’s marketing and business team is set to join JollyChic, its developer team will stay with Lyke during the transition period.

Launched in February 2016, Lyke is an aggregator app for online fashion and beauty stores. It also offers a personalised service so users can follow their favourite shops and brands.

The company raised nearly US$4 million in series-A funding in August 2016.