On Urbantouch website there was message left stating about it’s operations being shifted.
Urbantouch.com was started by Abhishek Goyal in January 2011 and was acquired by Fashionandyou.com in a cash plus stock deal for approximately US $30 million in August last year. As part of deal Abhishek Goyal joined Fashionandyou.com as the CEO and the existing shareholders of Urbantouch.com exited.
Abhishek Goyal, who was the Chief Executive Officer of Urbantouch and had taken over at FashionandYou after the acquisition, filling the seat left vacant by co-founder Pearl Uppal is also on his way out.
Fashionandyou has been going through a tough time coping up with retaining it’s CEO and there were rumors of internal conflict between Harish Bahl and Abhishek Goyal.
Fashionandyou is also in talks with Pepperfry for a merger and as per media sources after the merger Ambareesh Murty, Founder, Pepperfry will be the next CEO of Fashionandyou.
A post at Quora in January stated, “The urbantouch team along with Abhishek Goyal will be ousted – how, when etc to be decided by investors. The Pepperfry deal is off since Ambareesh Murty declined to step into the current mess as his leadership team was completely opposed to this idea.”
Ecommerce industry has witnessed various examples of websites been shut after acquisitions including website like Letsbuy which was acquired by Flipkart in February 2012 was shut in May and the traffic was redirected to Flipkart. Similarly Snapdeal shut eSportbuy and Yebhi shut StylishYou’s after acquisition.
Category Investments News