E-commerce logistics startup Chhotu is shutting shop due to lack of funds reports BuisnessWorld. Confirming the development, co-founder of the venture Navneet Singh accepted that the company has not been able to raise capital for almost six months now. They have decided to look out for a buyer before officially resigning to a closure. The company is no longer taking fresh orders.
“We are yet to make an official announcement,” said Singh.
However, GSF founder Rajesh Sawhney who has seed-funded the company, confirmed a closure and said he has already written off his investments in Chhotu.
“They could not scale the business,” confirms Sawhney. “E-commerce is going through a tough squeeze and the individual players are struggling,” he adds.
Another angel investor Dinesh Agarwal, CEO of Indiamart.com, says he is unaware of any such developments. “The company has been in trouble for some time now and I stopped tracking them six months back,” says Agarwal.
Delhi-based startup was started with an initial investment of about Rs 5 lakh and had received about Rs 1 crore from Super Angels. By the beginning of 2012, the company had ramped up operations in cities like Delhi, Mumbai, Bangalore and parts of Punjab.
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