ShopX, an India-based ecommerce enabler, has shut down its operations, citing unviable scale-up efforts.
Photo credit: ShopX
“While we succeeded in achieving various milestones, it became unviable to operate at scale given the low-margin profile of the industry, and hence we took the hard decision to close the business,” the startup told Tech in Asia in a statement.
Entrackr first reported on the development.
Founded in 2015 by Amit Sharma and Apoorva Jois, ShopX had raised over US$56 million in funding from several investors including Singapore’s Fung Investment and Nandan Nilekani, co-founder of India-based tech giant Infosys. The ecommerce enabler had reportedly drawn multiple loans from Fung Investment.
“The unpaid loan and interest obligations of the company are limited to its main shareholders,” ShopX told Tech in Asia. The company added that all the dues of its employees have been cleared to date.
Starting as a supply chain-led B2B startup, ShopX pivoted to an ecommerce enabler model last year, allowing retailers to transform their businesses into tech-enabled platforms. It said that it has empowered 170,000 retailers so far. Before the pivot, the firm had reportedly laid off nearly 50% of its workforce.
According to its LinkedIn page, ShopX currently has over 400 employees.
See also: This ecommerce enabler just raised $12m to become the Philippines’ Alibaba
Editing by Miguel Cordon and Lorenzo Kyle Subido
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