According to sources, its just in that Fashionara.com, the Online fashion and lifestyle store has shut down. The startup’s website and app are no longer accessible. The news has not been confirmed by the company yet. The venture had raised funding from Lightspeed Venture Partners and Helion Venture Partners, in 2012. The co -founder Darpan Munjal left the company in January this year.
The startup, operated by Fashionara Enterprises Pvt Ltd, was founded by former Reliance Trends CEO Arun Sirdeshmukh and Munjal, former chief technology officer at Times Internet Ltd, in 2012. It raised $4 million in Series A funding from Lightspeed and Helion the same year. The company secured $7-8 million from Lightspeed and Helion.
According to reports, Lightspeed Ventures had exited the company last year. In the year 2014, the company changed its business model from being a pure-play fashion portal to an online marketplace for fashion products. This did lead to a jump in the the net sales of the company in the Fiscal year 2014-15. But at the same time its net loss widened to Rs 32.13 crore from Rs 21.11 crore in 2013-14.
The company, in its financial statement,said that:
“The e-fashion segment is a challenging environment given that six large horizontal marketplace players and two large fashion verticals are constantly discounting the brands and products we are marketing through our platform. This makes it necessary to constantly review our approach and formal choice,”
The “not yet confirmed” shutdown comes at a time when mid and late stage funding VC firms are becoming hard to impress. And this is not just limited to the fashion market but in general all the sectors. Fashionara offered products from some well-known brands including Adidas, Reebok, Benetton, Sisley, Nautica, Guess, Lee, Wrangler and Vans. The company had also entered into the home-furnishing market in March 2015.