The latest buzz in ecommerce universe is that Bangalore-based fashion etailer Fashionara has shut down for good.
There’s no official word on it but their website and app is no longer available. Its twitter feed too is devoid of any fresh updates. While co-founder Darpan Munjal left the company in the beginning of this year, reports suggest that investors too have pulled out.
Lightspeed Venture Partners along with Helion Venture Partners had poured in $7-8 million in 2014. Although, when asked about Fashionara shutting down, Bejul Somaia, Managing Director at Lightspeed confirmed,
“Lightspeed exited its position some time back and are no longer an investor…”
Fashionara’s past attempts to revive business
The etailer tried every trick in the book to survive in the highly competitive online fashion segment. They moved away from an inventory-led model and opted for a hybrid marketplace model by launching F.Lea Bazaar in September 2014.
Then in August 2015, the company debuted India’s first ‘Flash Sales’ fashion app. Their sales multiplied but so did the losses.
But it appears that the efforts didn’t pay off.
The dark shadow of shutdowns and devaluations
All is not well in the internet startups and ecommerce industry. At least the recent shutdowns and devaluations suggest that. Fashionara’s rival Jabong is struggling at the moment.
Ecommerce leader Flipkart’s valuation has been slashed down multiple times this year by investors. And many financiers have pulled out from Snapdeal. While Flipkart’s CEO Binny Bansal believes that devaluations mean nothing, we wonder if consecutive markdowns are an indicator of larger problems that loom ahead.
FDI guidelines and conservative investing environment is adding to the woes of Indian startups and ecommerce biggies. Will things get better or will more companies bid adieu?