Women-focused E-commerce Company, Stalkbuylove Faces a Cashcrunch

The e-commerce company is not able to pay dues to the vendors, fashion influencers and customers.
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

  • |
  • Sep 12,2019
  • |
  • 9 Mins Read

The Indian e-commerce segment has been one of the alluring niches as it not only fulfills the needs of the customers but also, renders a wide variety of consumable products under one roof. Over the period, customers’ reliance has increased on the e-commerce sites and this, in turn, attracted investors across the world using this opportunity and infusing capital in the Indian e-tailers. According to India Brand Equity Foundation (IBEF), the e-commerce industry in India witnessed 21 private equity and venture capital deals worth US$ 2.1 billion in 2017 and 40 deals worth US$ 1,129 million in the first half of 2018.

However, increasing investment has not much affected the e-commerce industry as small players are not getting a boost to keep the business afloat. Likes of Shopclues are presently grappling for survival in the industry. Recently, Delhi-headquartered e-commerce firm, Stalkbuylove has faced a cash crunch. 

Stalkbuylove, a women-focused online retailer, has run out of cash as the company faces a funding crunch, the daily news, The Economic Times reported citing two people privy to the matter. 

Why has Stalkbuylove Faced a Cash Crunch? 

The e-commerce company is not able to pay dues to the vendors, fashion influencers and customers. As a result, customers have been making complaints on social media since June this year, stating that orders were not processed as well as delivered.      

Trouble began six months ago when the e-commerce firm was faced with a cash crunch after a financing round that was likely to be led by a German fund fell through, the daily news reported citing people privy to the matter.

“They should have scaled-down operations and cleared dues and payments, instead they decided to continue their operations,” one of the employees told the daily news, The Economic Times. 

The employee also said that the company faced significant pricing pressures and growth issues after Chinese e-commerce firms such as SHEIN and Club Factory took away market share.

The present time has turned out to be difficult for small e-tailers in India. Companies like Wooplr, Shopclues, and Craftsvilla among others are closing down their business. To save their business, the e-commerce companies are either reinforcing their business model or selling it out.

More about Stalkbuylove

Stalkbuylove is an online platform that sells female-centric products. The e-commerce platform trades in jewelry, apparel, and bags related to women. The company is based in Delhi and has generated a revenue of $27.8K apiece employee, according to business intelligence company, Owler. So far, the company has raised an aggregate of $7 million in funds. 

According to a report, the company has incurred a loss of INR 35 crore against a revenue of INR 43 crore in the financial year 2018. FabAlley, backed by Shivani Poddar, is one of the strongest competitors of the women-focused e-commerce company. 

 

 

 

Please add your Comment

More from Jaspreet Kaur

Get Industry First Insights

Sign up for our exclusive Newsletter

  • Follow BusinessEx
Stay tuned & get updated