Almost after three years after acquiring Shopo.in, Snapdeal will shut down the online marketplace for quirky and handicraft products on 10th February after a year and a half of operations, reported ET.
The company said, “We started a year and a half ago, from a small conference room with our mission to enable small and individual sellers across India to sell online. In this short time, we have together discovered the dynamism and vibrance in the C2C space in India. We thank you for your support and feedback that enabled our young team to help more than 2 lakh sellers start and grow their online shops.”
Shopo was acquired by Snapdeal in 2013 and relaunched as a zero-commission marketplace. It allowed small and medium sized businesses to chat, buy and sell on the platform. In 2015, Snapdeal had committed to invest $100 Mn in the handicrafts marketplace over the next two years.
However, Snapdeal is now looking to cut costs and conserve cash as it struggles to raise fresh round of funds. The sign of this move by Snapdeal could have come when it (Snapdeal) merged the entire Shopo team with FreeCharge in November. Sandeep Komaravelly, who was the senior VP in charge of Shopo, and instrumental in the merger quit in January to join a new venture.
According to Sandeep’s LinkedIn profile, he has now joined Oben General Insurance Ltd. as chief marketing officer.
This is not the first time, Snapdeal had earlier also shut down its premium and luxury fashion goods platform Exclusively.com. And just last week, Snapdeal also suspended an incentive programme for customers that it employs through affiliates, highlighting the online marketplace’s struggles to conserve cash.