Infosys co-founder Nandan Nilekani-backed e-commerce startup ShopX has shut down operations and filed for bankruptcy, according to the company’s regulatory filing.
This comes over a year after the company reportedly laid off nearly half its workforce while moving towards a digital model rather than a supply chain-led model. Founded in 2015 by Amit Sharma and Apoorva Jois, ShopX offered e-commerce solutions for retailers and brands, before it pivoted operations to e-commerce enablement and offered a SaaS platform for retailers to reach brands.
“Since the business model of the company 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,” the company said in a filing.
ShopX has taken multiple rupee loans from its Singapore-based investor, Fung Investment, and is unable to meet its payment obligations due to insufficient funds.
ShopX has raised over $54 million to date and was valued at over $100 million during the last round. Nilekani alone had reportedly invested $18 million in the company.
The company couldn’t manage to score any new round since April 2020, even when 2021 proved to be the golden period for Indian startup funding.