Online marketplace for handcrafted products Shopo has been acquired by #snapdeal. This comes just a few months after its Chief Executive Officer Krithika Nelson quit the company citing health reasons.
The development also comes a few days after Bangalore based online handicrafts company Aporv shut shop.
In an e-mail to vendors, the Sequoia backed handicrafts company said that they are moving to a “bigger and better” platform with a huge buyer audience by “reaching an agreement” with Snapdeal. Simply put, Shopo has been acquired by Snapdeal.
Recently, Snapdeal raised $50 million from eBay, existing investors and a Japanese investor taking the total venture capital investment in the company to $102 mn.
Update 1: The Chennai based e-commerce site Shopo says on its landing page that it is now part of Snapdeal. Looks like the site will be shut soon as it also says that if you have any balance in your Shopo wallet, it will be refunded within 10 working days.
Three months ago, Krithika Nelson, the Co-Founder & CEO of Shopo had quit and Theyagarajan S, the other co-founder took over as CEO. At the time, we’d asked whether there is a sustainable play for niche players like Shopo. Recently, Bangalore based Aporv, which is in the same business shut down.
Industry watchers said that the companies were struggling because the weren’t able to create entry barriers. Basically, the same vendor would be selling on different platform and competing for the same buyers attention. This led to lack of differentiation and the small number of buyers did not justify the large number of sellers.
Finding new customers and adding more repeat buyers was a challenge for the companies as well.
Last year, Snapdeal acquired eSportsbuy, a Delhi based startup that sells fitness and sports products online.
Update 2: The press release has just come in. Nothing worth adding to this story.