Bengaluru-based ecommerce startup ShopX has filed for insolvency and bankruptcy under Section 10 of the Insolvency and Bankruptcy (IBC) code, according to the company’s filings with the Registrar of Companies (ROC).
“ShopX has been instrumental in co-creating the e-B2B industry. Over time, it has become unviable to operate at scale given the low margin profile of the industry, and hence, the decision to shut down operations. We have focused on an orderly and ethical windup, respecting all company obligations,” the company spokesperson told Entrackr.
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Founded in 2015, ShopX offered ecommerce solutions for retailers and brands. Last year, it pivoted its operations to ecommerce enablement and offered a SaaS platform for retailers to reach brands. Catering to Tier-II and Tier-III customers, the ShopX app aggregated demand from retailers and allowed them to sell the products without maintaining a physical stock.
ShopX took out multiple rupee loans from its Singapore-based investor Fung Investment, and was unable to meet its payment obligations (interest on loans) due to insufficient funds, Entrackr reported.
The report also added that since ShopX’s business model did not succeed, it couldn’t generate enough cash flow or raise new capital.
The startup’s last fundraise was in April 2020 when it raised Rs 10.67 crore from Fung Group’s investment arm FX Pte Ltd—Li and Fung.
Prior to this, ShopX raised $35 million from Fund Strategic Holdings Limited (FSH) headquartered in Hong Kong in August 2018.
