Latest e-commerce shut downs and acquisitions in India
The Indian e-commerce story has witnessed a lot of action in the last so many years with sites like Flipkart, Bookmyshow, Makemytrip becoming household names. This growth has inspired many to launch their own e-commerce start ups to get a slice of this multi-billion dollar opportunity. Many have succeeded but the number is nowhere close to the number of businesses that have failed.
With so much interest and potential in the e-commerce sector and investors becoming more careful having burned their hands, many businesses had to finally close down for the lack of funds. Also, some startups had to finally agree for mergers pushed by common investors, wherein the acquired site / brand was eventually retired.
Though, many e-commerce sites failed for various reasons, and had to shut down or were eventually acquired in a distress sale; experts still believe that the Indian e-commerce story is nowhere near maturity and is expected to have 7% share of the country’s retail market by 2023, amounting to $60 billion.
Hopefully, this page on Klypy India will help e-commerce enthusiast find a list of all acquisitions and shut downs in the e-commerce field in India; and help them learn from the failures of others and build a sustainable business.
In addition to shutdowns, we found some interesting rumors floating around and thought of including them as well.
Yebhi has been in news for quite some months about wrong things happening in the company. Is it shutting down? Here are some reported data points.
- Co-founders Nikhil Agarwal and Rahul Jain quit over differences with Manmohan Agarwal in January, 2014.
- Competition has moved fast and adapted their business model to that of a marketplace and prepare better from an attack from Amazon, yebhi apparently is trying to catch up.
- No recent funding.
- IRCTC tie up didn’t work as expected.
- No major advertisement in the last year or so.
- Consistent fall in website traffic. Alexa rank has fallen from 2,000 to around 5,000 over the last 6 months.
- No updates on Yebhi’s facebook page since June 17, 2014. Earlier the site was posting every few days. Didn’t see any activity for independence day as well. No special offers.
- All major affiliate networks have asked publishers like Klypy to stop promoting offer and deals for Yebhi.com, as payments have been an issue.
- Employees and sellers have not been paid for months. Many sellers have since then moved out of the marketplace.
Documented e-commerce shutdowns and acquisitions
August – Payzippy.com
Flipkart pulls the plug on its payment gateway, PayZippy. The news coincides Flipkart’s recent strategic investment in Ngpay. It is believed that closure of Payzippy is a result of PayZippy not becoming a wallet before RBI changed its plans. (via MediaNama)
May – Myntra.com
Myntra.com gets acquired by poster boy of Indian e-commerce, Flipkart. The deal values Myntra reportedly at Rs. 2,000 crores and is a 100% acquisition in cash and stock. After the acquisition, Myntra will continue to operate as a separate entity with the CEO of Myntra heading Flipkart’s fashion business. (via Times of India)
April – Allschoolstuff.com
Allschoolstuff.com after selling over a million school & learning products has closed down its operations. The site was active for 3 years and raised $1 million. Failure to raise another round of funding was the cause for the closure. (via NextBigWhat)
March – Dhingana
Rdio acquires Dhingana, plans to launch Rdio India by the end of the year. (via thenextweb)
February – Dhingana
Dhingana closes down primarily due to failure to renew license with T-series. (via Times of India)
Musicfellas, an indie music platform was acquired by Gaana.com. The deal was reportedly for Rs. 50 lakh. The deal involves a founder, Mayank Jain joining the Gaana team. (via NextBigWhat)
December – Indiaplaza
Indiaplaza.com, India’s pioneer in online shopping space primarily offered electronics domain has stopped operations . The site was unable to raise fresh funding and reportedly closed down operations sometime after Diwali. (via Wikipedia)
November – Goodlife, Chhotu.in
September – Husbabies
Hushbabies, run by Lapis Marketing pvt. Ltd., which acquired Mangostreet.com in August 2012 has finally closed down. The company was a victim of capital crunch and poor sales. (via BusinessWorld)
July – Miraistore
Miraistore, Bangalore based online retailer, backed by an angel investor and having raised $ 1 million has shut down the website to focus on a private label, Felicia. (via NextBigWhat)
June – Redbus
May – Koolkart, Aproy.com, Istream.com, Timtara.com, 21diamonds.in
Koolkart, an ecommerce website with price comparison and social combined shows out of stock for all products and finally closed down. (via NextBigWhat)
Aprov.com, a Bangalore based marketplace for Indian handicrafts has closed the site for new orders. All products are out of stock and the founder has moved on. (via NextBigWhat)
Istream.com, an online video streaming company, having securing $5 million in funding, shut down with huge disappointment as per a note on the home page of the website. The reason for the shut down was failure to raise another round of investment. (via NextBigWhat)
Timtara.com shut down its operations. The shut down followed the arrests of Timtata CEO on allegations of fraud. (via iamwire)
21diamonds.in, a rocket internet owned online jewellery and fashion accessories website has closed operations in India. The site no longer is available. (via iamwire)
March – Rock.in, Urbantouch.com
Rock.in, a fashion retailer started in May, 2012 has completely shut down with the website and customer support numbers being not operational. Rock.in was backed by Partech International and reportedly was looking to raise a series B funding of $5 million, which apparently didn’t come through. (via NextBigWhat)
Urbantouch.com, was supposed to be run as independent website and have cross linkages with fashionandyou.com; but within months of the acquisition, the website is now redirected to fashionandyou.com. (via Medianama)
February – Inkfruit.com, Travelocity.co.in
Travelocity.co.in closes down Indian operations and urges users to use their global site. (via Medianama)
August – Urbantouch.com, Mangostreet.com
Urbantouch.com reportedly was acquired for $30 million by fashionandyou.com in cash and stocks. (via Medianama)
MangoStreet.com, an e-store for kids products was acquired by Lapis Marketing pvt. Ltd., the company behind Hushbabies.com for an undisclosed amount. (via vccircle)
June – Travelguru.com
May – Letsbuy.com, eSportsBuy
March – MadeinHealth.com
MadeinHealth.com is acquired by Healthkart.com for an undisclosed amount. In related news, the founders of MadeinHealth were joining Yebhi.com reportedly for $4 million in cash and stock. (via vccircle)
February – Letsbuy.com
Letsbuy.com got acquired by Flipkart for cash and equity. The Letsbuy team of 350+ will continue to function independently with access to Flipkart’s technology platform and supply chain capabilities. (via Medianama)
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