BENGALURU: Online marketplace Snapdeal has shut Exclusively.com – a premium online fashion and accessories platform it had acquired in February last year. The development marks continuous efforts made by the SoftBank-backed company to rationalise costs amid a funding slowdown. According to sources, Exclusively.com had a team of about 40 people who will now be merged with Snapdeal and focus on the overall fashion business of the company. Business daily Mint reported earlier on Wednesday about the closure of the portal.
Sources told TOI that Snapdeal’s effort to build Exclusively as a counter to the Flipkart-owned Myntra did not work out with the website not gaining any traction. “To boost sales, Snapdeal started discounting on Exclusively, which did not yield results. It also witnessed a churn in the number of designers on board, which was one of the unique propositions for a platform like this,” said a person directly aware of the development. Snapdeal, at the time of acquisition, had said it aims to clock $1 billion worth of business in three years from Exclusively.
This happens when you buy sick business just for valuation, the e-commerce is good, but without data infrastructure it won”t prosper…the bubble would burst sooner or later.Sanjeev
Kunal Bahl-led Snapdeal recently lost out to Flipkart when the Bengaluru-based online commerce major clinched Jabong in a $70-million cash deal which now gives it clear dominance in the online fashion market.
Snapdeal in a statement said on Wednesday that it has “integrated” Exclusively with the parent site, which will ensure a wider access for the fashion and lifestyle products available on Exclusively, as now all Snapdeal users will have access to the same. Founded in 2010 by Sunjay Guleria and Mohini Boparai Guleria, Exclusively was sold to Myntra in 2012. Later, the founders bought back shares of the company from Myntra and sold it again to Snapdeal for an undisclosed amount.