This is getting a bit repetitive now. Bangalore based Aporv, a marketplace for Indian handicrafts is shutting down. This is the third closure of e-commerce company we have reported in the last three days.
All the items on the site are out of stock and its founder & CEO, Sudip Dutta has moved on to become a partner at Sourcebits, a mobile development company.
Aporv, which was launched a couple of years ago, was working with individual artisans, organisations and self help groups to stitch up a market place.Niche online handicrafts companies such as Craftsvilla and Nethaat are still operational but are marketplaces without any inventory.
All this, doesn’t mean that the industry is on the verge of collapse. It is just undergoing a correction which has been in the making. There isn’t just enough buyers online to sustain thousands of e-commerce companies that sprung up in the last 3-4 years. Neither are there investors willing to spare some cash until there are enough buyers.
The first movers who raised large rounds of funds, the differentiated ones and the ones that focused on unit level profitability right from scratch will be around for a long time to come.