Yebhi Shuts Down its Own Shop; Becomes Fashion Product Discovery Portal

Indian e-commerce portal Yebhi has changed its business model, from an e-commerce marketplace it has now become an eCommerce product aggregator for other online stores.  The company had indicated the same on its Facebook page on Tuesday, but the official announcement came in today. Also, Manmohan Agarwal has stepped down from the position of CEO and assumed the position of Managing Director. Yebhi’s co-founder Danish Ahmed, has now stepped into the CEO position.

Fashion etail has evolved significantly in India and customers are seeking more information and engagement before purchasing a product,” says Danish Ahmed “They want to access to the largest variety, pay the lowest price and buy the trendiest product in the market.  We are changing Yebhi to address these customers. We are bringing them variety from all the online and local stores, showing them prices with discounts & offers across these stores, and guiding them to products that would most suit their tastes, social circles and body structure.”

He added “E-Commerce is a very capital intensive industry and companies will continue to burn a lot of capital to acquire more customers. We decided to move out of that space, and leverage our learning’s and brand value to build a business that’s highly profitable and scalable. We are building a business which is capital efficient & at the same time consumer efficient in today’s scenario.”

Besides having coupons from portals like Flipkart, Myntra, Jabong etc. the company is also listing products from these sites. What is to be noted is that even though the model has changed, there is no major change in design of the product listing pages. Since it has given up on the e-commerce model, the company is now competing with online coupon, product listing and cashback sites.

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Last year in November, we were speculating if its long time investors Nexus and Fidelity had given up on the ex e-commerce player as the company was intending to raise USD 30 M without the two.

We believe that it is a great strategic move by Yebhi. Since e-commerce was not proving to be profitable, the company has moved to being an affiliate marketer which is a hot place to be in at the moment. From 10% margins in e-commerce, the company can now gain in upto 80% margins by being an advertising channel for other e-commerce players.

  • Rajeev Gupta

    How does one get the dues from Yebhi. For all supplies since May 2014, they have not paid me as a vendor and there is no contact details. As a matter of courtsey they should have at least sent emails to their vendors stating the problem and informing them how the dues will be setelled. They will have a togh time ahead.

  • Prachi

    Is there a way to recover losses the vendors have faced due to non-payments to them?? Is there anyone who can help vendors recover their debt from yebhi? any legal guidance on this?

    Pls reply to

  • Ranu

    Never sell your products with

    This is just a way to escape from their long pending dues and debts they owe to their vendors and investors. Literally sucking others blood and showing up as a big brand is all what they do. Yebhi Sucks!!!

  • Sandy

    This all seems to be the deliberate move of promoters as they are moving towards bankruptcy. Not sure how VC recover money as they already have crossed level 3 round.

  • razz

    yebhi… wohbhi ho gaya

  • biksdh

    How to get refund for the for returned items

  • Saurabh

    Expect a few more cos to close their eCommerce business in next 1-2 years – including some big names!

  • Yebhi_vendor

    It might be a smart move! However, what about the crores of rupees it owes to its vendors which it is defaulting on??

  • Ujjawal Yadav

    soon more will be in queue

  • bizorant

    too much discount would eventually kill most ecom players

  • AJ

    This is not a voluntary decision by Yebhi. They have defaulted on all their creditors and owe crores in credit debt to suppliers. They have ruined their name in the marketplace

  • Niloy Dutta

    Yebhi has got bankrupt and that’s a fact! They are not paying their long pending overdues to vendors and employees. Change of format could be just another gimmick to make some quick money before they finally shut and vanish with vendors and investors money. This was coming keeping in mind their terrible pedigree!!! Bad Show Yebhi!

  • Sidd

    Here goes the first one…