ShopX, a startup backed by Nandan Nilekani, has filed for bankruptcy after its business model failed. According to company filings obtained from Tofler, the company failed to generate enough cash flow and also found it difficult to raise new capital.
The startup offered a retail operating system that linked brands, retailers, and customers. Due to financial constraints, it filed an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, last month. “The company has failed to meet its various payment obligations and is no longer a going concern.” “The company has tried various options to meet its payment obligations, including raising additional equity, selling assets, selling the business, and so on, but has not been successful,” according to the company’s filings.