Flipkart, the Walmart-owned e-commerce giant, has decided to shut down its subsidiary, ANS Commerce, and lay off its entire workforce.
This decision comes three years after Flipkart acquired the Gurugram-based company in 2022.
ANS Commerce, a full-stack e-commerce enabler, provided a range of support services, including marketing tools, warehousing, and store technology, to businesses looking to sell products online.
Reasons Behind the Shutdown and Impact on Employees
The decision to shut down ANS Commerce was made after careful consideration by Flipkart.
Despite a 39.4% increase in operating revenue to Rs 54 crore in FY24, ANS Commerce’s net loss widened to Rs 73.8 crore.
This financial performance may have contributed to Flipkart’s decision to close the e-commerce enabler.
The company aims to ensure a smooth transition for all stakeholders, including employees and customers, during this process.
The shutdown of ANS Commerce has led to the layoff of its entire workforce.
The exact number of employees affected by the closure is unclear, but ANS Commerce had 600 employees at the end of FY2022.
Flipkart has committed to minimizing the impact on employees during this transition.
The company plans to offer internal opportunities at Flipkart, outplacement services, and severance packages to affected employees.
This approach aims to provide support and assistance to employees as they navigate this challenging period.
Flipkart ANS Commerce’s Journey
Founded in 2017 by Amit Monga, Nakul Singh, Sushant Puri, and Vibhor Sahare, ANS Commerce quickly established itself as a key player in the e-commerce enablement space.
The company provided services like store tech, performance marketing, and warehousing to over 100 brands, including Jack & Jones, Vero Moda, HUL, and Lakme.
In 2021, ANS Commerce raised $2.2 million in a pre-Series A round, further solidifying its position in the market.
However, despite its growth and success, the company faced financial challenges that ultimately led to its closure.
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