ShopX files for bankruptcy

23 Aug 2022 , 09:50 AM

ShopX, an e-commerce site, has shut down and declared bankruptcy.

According to documents filed with the Ministry of Corporate Affairs, the organization, supported by Infosys co-founder Nandan Nilekani, submitted an application under Section 10 of the Insolvency and Bankruptcy Code.

Last month, its board approved a special resolution to declare bankruptcy.

Due to the failure of the business model, it is no longer a going concern because it is unable to meet its numerous financial obligations and cannot produce enough cash flow from operations or raise more capital.

The company had tried a number of methods to settle its debts, including raising more equity and selling its assets and operations, but none of them had been successful.

ShopX, run by 10i Commerce Services and established in 2015, began as a business-to-business (B2B) ecommerce platform facilitating connections between retailers, brands, and customers.

In order to enable offline retailers and kirana stores (corner stores) to move online, it also provided mobile and web applications.