The ecommerce in India is witnessing a vast change as acquisition and funding seem to be doing rounds. Soon after Flipkart acquisition on electronic retailer LetsBuy, there is a report of Exclusively.in looking for a buyer for their site.
According to TOI, Exclusively.in, backed by the investors like Accel partners, Tiger Global and Helion Venture, has sacked several employees and is up for sale. “Currently we are running Exclusively.in but we are focusing on our private label business which requires less human capital,” said Sunjay Guleria, CEO & co-founder, Exclusively.in and SherSingh.com, which has raised $19million so far.
Iamwire followed the reports closely and found that Exclusively.in, has sacked large number of employees. The founders of the fashion flash sales site are now focusing their resources on their private label portal, SherSingh.com.
Earlier, Exclusively raised $16mn funding from Tiger Global Management, with participation from Accel Partners India and Helion Venture Partners in May 2011 (and $2.8mn in November 2010) and pivoted from member only site to a traditional ecommerce model in October 2011. The company has fired several employees and as per reports, the site is up for sale now. As far as the company is concerned, they will now focus on Shersingh, a private label portal they launched in November 2011.
In our view dynamics of ecommerce business in India has started showing its altogether different colors. Yesterday, we have seen the acquisition of Letsbuy by Flipkart and now Exclusively.in is up for sale, so the million dollar question is what the core reasons that led situation of buyouts are? Some say it is investor’s call for consolidation of the industry, running out of cash flows etc; however we believe that ecommerce companies have not focused on sustainability while maintaining the growth momentum. In last year industry has witnessed debacle of ecommerce businesses like Taggle, VogueMagnet and Vamoose.in and largely the reasons for their debacle were common – they did not have any money (investment) to burn. Hence, the ecommerce businesses need to draw cue from the debacles/buyouts and focus on sustainability rather than looking for cash to burn for a long time. Iamwire is tracking the Indian eCommerce’s changing dynamics very closely and we will come up with more insights and views of ours on this.