Indiaplaza becomes another e-commerce casualty

One among the oldest e-commerce ventures in India,

Indiaplaza has become another casualty among many some recent ones. The web platform is in the final stages of closing down because of its inability to raise fresh round of funds. Sources say the company has already sent a notification to all its vendors for negotiating and settling their final dues.

The last fundraise for Indiaplaza happened in 2011 when it raised 5 million dollars (Rs 29.6 crores) from Kalaari Capital (then known as IndoUS Venture Partners). The company was expecting to raise next round in mid 2013, but could not find an investor. While the site is active as of now, everything on it is termed ‘out of stock’.

Indiaplaza was launched as Fabmall.com in 1999, making it one of the first e-commerce ventures in India. Prior to a Series A round in 2011, the company had raised 3 million dollars (Rs 17.8 crores) in angel funding between 2004 and 2011, from Indigo Monsoon Group.

Despite research reports being gung ho about the prospects of e-commerce in India, many small players are finding it hard survive due to fierce competition and current volatility in the market. Most small players are either merging with successful ones or shutting shop.