ShopX, an Indian e-commerce facilitator, has stopped operating due to unsuccessful scale-up initiatives.
“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 as per reports.
Amit Sharma and Apoorva Jois founded ShopX in 2015, and it has since secured over US $56 million from a number of investors, including Nandan Nilekani, the co-founder of Infosys and Singapore’s Fung Investment. According to reports, Fung Investment has provided various loans to the e-commerce facilitator.
ShopX, which began as a supply chain-driven B2B firm, changed its business model to one of an e-commerce enabler last year, enabling merchants to turn their operations into tech-enabled platforms. It claimed that 170,000 shops have already benefited from it. The company apparently let go close to 50% of its personnel prior to the turnaround.
According to ShopX’s LinkedIn page, the company presently employs more than 400 people.