The second venture of Yebhi’s Co-founder, Danish Ahmed, Shopsity also faced the declination in the business. It was an online-to-offline startup that was desined to connect the customers to their nearest fashion retailer. Currently, its app and website is not working.
Moreover, according the Linked-In profile of Danish Ahmed, he has joined PayTm, an e-commerce and mobile wallet firm, as the president of online-to-offline (O2O) business.
Ahmed had left Yebhi.com, one of the early successes in the e-commerce industry of India, in March 2015 and started Shopsity Tech Pvt. Ltd, a Gurgaon-based firm. It is believed that the company failed to raise funding for their processes and hence, led to its closure.
Although, it raised seed funding from the ShopClues’s founder and former chief executive, Sandeep Aggarwal, and Teruhide Sato, Netprice’s founder (now Beenos), a global Internet and e-commerce business incubator. The startup was searching for next round of funding to expand its operations in other cities, but failed to achieve that.
In the beginning of 2016, Ahmed had stated that the company was planning to raise series A round of funding of $3 million and had begun talks with the investors.
The rivals of Shopsity include NCR-based Shouut, Zakoopi, and Fashalot and Bengaluru-based Retale.
Shopsity started with a plan, according to which, it was charging a commission from retailers on each transaction completed over Shopsity. But according to the Ahmed, “that model turned out to be dependent on too many variables”.
In January 2016, the firm shifted to a subscription-based model where retailers have to pay subscription fees of Rs 40,000 to Rs 1 lakh per year to get listed on the Shopsity platform accompanied by access to different marketing tools.
By employing these changes, Shopsity started receiving operational profits and was confident of closing 2016- 17 financial year with a revenue of Rs 5 crore. But unfortunately, hopes turn sour and they have to close their operations.