Poshmark, an online social shopping platform, has announced its intention to close its operations in India by October 26, 2023. This comes two years after its debut in the country in September 2021. Poshmark is also halting operations in Australia and the UK. The decision follows its debut in India in September 2021.
So, what led to this abrupt decision? Poshmark’s journey in these international markets, especially India, was relatively short-lived. After its grand entry in 2021, the company seemed poised to capture a significant market share, especially given the rising trend of sustainable fashion and the appeal of secondhand products. However, the numbers tell a different story. Despite boasting a whopping 8.1 million monthly active users on its mobile apps globally, the company’s traction in the UK, India, and Australia has been dwindling. Recent data reveals that in the past month, fewer than 500,000 users were active across these three countries.
In an official statement, Poshmark shed light on its decision, stating, “While our ambition remains to connect as many closets as possible, we’ve made the tough decision to close our Poshmark India marketplace.” The primary reason? The company wants to channel its energy and resources into bolstering its presence in its core markets: the US and Canada.
This strategic shift isn’t entirely out of the blue. Last year, South Korean e-commerce titan, Naver Corp, acquired Poshmark in a deal that valued the platform at $1.6 billion, a stark contrast to its peak market cap of $7.3 billion. Such fluctuations often prompt businesses to reevaluate and refocus their strategies.
For Indian users, the clock is ticking. They have until October 25 to utilize their credits on the platform. From October 26 onwards, Poshmark will cease to accept new orders and listings. Sellers have a slightly extended window, with the last date to redeem their earnings set for November 1.
Manish Chandra, the co-founder and chief executive of Poshmark, expressed his gratitude to the global community. In a heartfelt note, he hinted at a potential return, keeping hope alive for many of its loyal users.
In conclusion, Poshmark’s exit from these international markets underscores the unpredictable nature of the e-commerce landscape. Only time will tell if this retreat proves beneficial for the company’s long-term vision.
