Since the business model hadn't succeed, ShopX couldn't generate more capital and was shut down.
ShopX, Nandan Nilekani-backed B2B commerce company, has shut down and filed for bankruptcy since it could not generate enough capital and is default in multiple loans took from various investors, including Nilekani (co-founder, Infosys) and Singapore- based Fug Group’s investment arm, FSX PTE LTD.
Nandan Nilekani, filed an application under Section 10 of the Insolvency and Bankruptcy Code, filings with the Ministry of Corporate Affairs showed.
ShopX borrowed money from Nilekani and FSX PTE. LTD throughout the time it was in existence, with a loan amount estimated to be above $50 million. It now has to pay quarterly interest to the lenders over to whom it has fallen behind.
“Since the business model has not succeeded, it has not been able to generate enough cash flow from operations or raise new capital and is therefore unable to meet its various payment obligations and has ceased to be a going concern,” according to the regulatory filings.
ShopX has considerably reduced its employee strength to ensure that there is no other recurring payment obligation.
“The company has been unable to meet its various payment obligations and has ceased to be a going concern. The company has tried various options to meet its payment obligations, including raising of additional equity, sale of its assets, sale of business etc. but is not able to achieve any success,” the company’s filings said.
On Monday, ShopX issued a statement that “the unpaid loan and interest obligations of the company are limited to its main shareholders”. The company said, “It became unviable to operate at scale given the low margin profile of the industry, and hence we took the hard decision to close the business.”
ShopX android mobile app has also been taken down from the Google PlayStore as of August 22 evening.
ShopX, run by 10i Commerce Services and established in 2015, began as a business-to-business (B2B) ecommerce platform facilitating connections between retailers, helping brands, and customers.
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 "Infosys co-founder Nandan Nilekani-funded ShopX shut down, files for insolvency")
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