Mired with cash crunch, Askme.com shuts shop; cuts 4,000 jobs

Askme.com is the latest e-commerce portal to shut shop in the country. With mounting liabilities and a severe cash crunch, the e-tailer decided to shut its operations, a move that will affect 4,000 jobs.

According to a Zeebiz report, Askme.com's website is still operational, but is not accepting any new orders.

The e-tailer decided to pull the shutters down only about a month after the unceremonious exit of Askme.com's largest shareholder Astro Holdings last month. The Malaysia-based company held a 97% stake in Askme.com. 

On August 11, dna had reported that Askme.com had stopped paying salaries and making vendor payments because of a cash crunch in the company. Astro Holdings, which was expected to release the last tranche of funds to Askme by July 31, did not make the final transaction, leaving the company in a lurch, according to the e-tailer. In a desperate effort to get funds, Askme also wrote to its employees and vendors, asking them to email or message Astro, to pressurise the company to pay up.

Getit Infoservices also knocked on the doors of the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (RoC) to ensure that the Malaysian company did not exit without paying its liabilities. AOL owns 98% in Getit Infoservices through Astro Entertainment Networks Ltd, Mauritius (AENL). The majority shareholders of AOL are Usha Tegas group and sovereign fund Khazanah Nasional of Malaysia.

It was only in May that Askme had announced its plans of expanding its operations to 30-40 new cities, adding to its existing 200 hubs in the country but not, it has frozen operations.