After $70 mn in bank, e-commerce aggregator 10Club close to bankruptcy

Subscribe to enjoy similar stories. New Delhi/Mumbai: E-commerce aggregator 10Club, operated by Boxseat Ventures Pvt Ltd, is close to shutting shop, less than four years after it drew attention by raising $40 million in early-stage money in the highest seed-funding round by an Indian startup.

The Bengaluru-based startup’s lack of success in orientating its business model towards stronger target markets and failure to pivot to an alternate strategy in time led to the current state of affairs, four people with direct knowledge of the matter told Mint, seeking anonymity. Over the past six months, payments to multiple vendors have been stalled, while employees have only received delayed and partial salaries, the people said.

The company is now consulting lawyers and its investors, with a consensus emerging towards filing for insolvency with the National Company Law Tribunal (NCLT), the people cited above said. Read more: Online-first gourmet food brands take offline route to entice consumers Multiple attempts to reach Bhavna Suresh, 10Club’s cofounder and chief executive, including a detailed email seeking a comment on 11 March, did not elicit a response.

10Club sought to follow what is globally known as the ‘Thrasio’ model. One company would consolidate multiple small e-commerce brands and sellers under its umbrella, and then operate them as a single, organized company.

By doing so, companies such as 10Club and its competitor Mensa Brands promised to expand operating margins by reducing overheads such as office, accounting and legal expenses, and other costs of operation—allowing small brands to generate bigger returns. Mensa Brands became ‘India’s fastest unicorn’—achieving a valuation of $1.2 billion within six months of