Snapdeal Decides To Shut Down Exclusively.com
As per reports from Mint, Exclusively.com, a Brand synonymous with luxury and fashion goods that Snapdeal had acquired last year for an undisclosed price is being shut down due to lack of Funding. Although the company ceases to exist; the brand will be maintained at Snapdeal website as a separate category.
This has mainly to do with the cash crunch the Startups including Snapdeal have been facing in the recent times. While a part of the employees working at Exclusively.com is likely to join Snapdeal and the others might get the pink slip.
The news comes at a time that there has been stiff competition from Flipkart which recently acquired Myntra. Exclusively was selling around 150-200 products a day with the average ticket value was about Rs 12,000 -20,000.A large chunk of the orders was from NRIs abroad.
What’s also interesting is the fact that Exclusively.com was trying to revamp its business and also had released an advertisement in this regard. But Snapdeal has taken everybody by surprise by deciding to shut down the business.
Exclusively was started in the year 2010, with the aim of selling high-end fashion products to customers before it was acquired by Snapdeal in 2015. It was also acquired by Myntra for a brief period before being bought back by the founders of the company.
Although the news is bad; as this could deter any new Angel investors looking to invest in a startup, this could have been done to face the stiff competition it faces from Amazon and Flipkart. Snapdeal will now have more time to focus on brand building and win back the customers who had left them for Amazon and Flipkart.