Indiaplaza.com, one of the early entrants in Indian ecommerce space is likely to shutdown, according a report by Techcircle.in which came early this week. We tried reaching out to the K Vaitheeswaran, the founder & CEO of Indiaplaza and are waiting for a response.
What the website says?
While the website is running, products are out of the stock in most categories. If you surf through listed categories, you’d find that products are “out of stock.”
For several product categories return a “404 error”.
There is some inventory in the books and stationery category. The customer care greets you with a pre recorded message and doesn’t put you on to a real agent. E-mails also went unanswered.
What vendors say
According to Sourabh Narula whose company “Matrix Innovation & Solutions“ was a seller on Indiaplaza.com, the portal had outstanding dues with many vendors. Payments have been due since November 2012, said Narula.
In June 2013 an email was sent by the e-tailer to vendors requesting for settlement. According to the mail the company was willing to pay 40% of the dues as the final settlement. While some vendors have agreed, some others have refused to do so. NextBigWhat accessed such a mail trail which can be seen below.
Email sent by Indiaplaza team
Sellers were assured that they will be paid as the company was raising funds.
Story from the customer’s end
Users have been complaining on the company’s Facebook & Twitter page. While the Facebook page went inactive in February, the Twitter handle is still responding to customers.
What employees have to say
On contacting, we received emails from employees stating that they have left the company. Though some of the workers are still around in the hope that company will soon raise funds and they will get their pending salaries of past six months.
An employee who does not wish to be named says that though the company is going through bad times, it has no plans to shut down.
What we think is happening
It’s too early to write off Indiaplaza. The company has been through rough times before and has bounced back. This time around, it seems doubtful if it will bounce back. However, it is highly likely that Indiaplaza is working on a buyout offer.