Amid the investment slowdown, homegrown eCommerce portal Snapdeal is likely to shut down its premium and luxury fashion platform Exclusively.com, reported a leading daily. The news came in the midst of Snapdeal funds crisis and the company is these days running all hand tight to conserve cash.
The New Delhi- based eCommerce giant is strategically examining the investments it has made during the last three to four years.
The website Exclusively.com will cease to exist as an online platform and Snapdeal will keep the category active under Snapdeal fashion segment. While most of Exclusively’s existing employees is likely to be absorbed in Snapdeal, some of them might be asked to leave.
After being acquired by Snapdeal, Exclusively managed to close 150-200 orders on a daily basis with average ticket size of around Rs 12,000 – 20,000. As off now the website will be kept live for the next 2 months, but consumers will not be able to buy products. The traffic will be rerouted to Snapdeal’s website.
The news came as a shocker as Exclusively had recently launched its mobile app last month, revamped its website and launched their first advertisement. The marketplace was an asset to Snapdeal for tapping into the luxury and premium fashion category. A large chunk of Exclusively business came from overseas market.
Fashion as a segment has always been important as well as a complex market for Indian eCommerce firms. Companies like Flipkart and Snapdeal has always been aggressive towards this segment of retail as it offer a fairly high margin compared to other categories like electronics, CDIT etc.
Launched in 2010, Exclusively.com was the brainchild of Sunjay Guleria and Mohini Boparai Guleria. Since the inception, the founders sold and bought the company twice over.
In February 2015, Snapdeal acquired Exclusively.com for an undisclosed amount in an all-stock deal. Exclusively was being run by Amit Maheshwari, who before joining Exclusively as its chief executive used to head Snapdeal’s fashion category.