Bengaluru-based ShopX has decided to ‘wind down its operations’ and has filed an application for insolvency and bankruptcy under Section 10 of the Insolvency and Bankruptcy (IBC) code, 2016, the company said in a Ministry of Corporate (MCA) filing.
The Nandan Nilekani-backed startup said that it defaulted on repayment of interest on loans due to the insufficiency of funds. The company said it took multiple loans from its investors including Nilekani and its Singapore-based backer Fung Investment, without sharing details about the figures.
The e-commerce enablement platform added in the regulatory filing that it has considerably reduced its employees' strength to ensure that “there is no other recurring payment obligation of the company.”
Entrackr was the first to report the development.
Founded in 2014 by Amit Sharma and Apoorva Jois, ShopX is operated by 10i Commerce Services Pvt. Ltd. The company started as a platform that enabled local kirana stores and small retailers to manage transactions on a single platform.
However, last year, it made changes to its operations to become an e-commerce enabler, pitting against a slew of startups in the space. The company also experimented with an app promising discount on the purchase of goods from nearby partner-retail stores, marking a foray into the consumer tech space.
ShopX had last secured funds in April 2020. To date, the startup has raised more than $50 million in multiple funding rounds.
Queries sent to ShopX remained unanswered till the time of publishing.
In the filing, the company said “it was formed with the object to do business of operating an e-commerce platform for the sale of various products and services by third-party suppliers to wholesalers and retailers.”
“Since the business model of the Company has not succeeded, it has not been able to generate enough cash flow from operations or raise new capital and is therefore unable to meet its various payment obligations and has ceased to be a going concern,” it added.
