Singapore-based E-commerce company Shopee has abruptly shut down its operation in India shortly after making its foray into the country. To recall, Shopee India launched back in November 2021. The e-commerce firm released a statement to the press shedding light on its decision to exit the Indian market without warning.
According to a Shopee spokesperson, Shopee India is shutting down citing “global market uncertainties.” On Monday, Shopee informed its employees of its decision to shut down its India business during an all-hands company-wide meeting. Last year, a new e-commerce policy in India prohibited e-commerce platforms from hosting flash sales. Furthermore, the e-commerce policy restricts any affiliated entities related to e-commerce platforms from becoming sellers.
In the statement, the Shopee spokesperson confirmed that the company will be closing its early-stage Shopee India initiative. Moreover, the company’s focus during this transition will be to provide support to its local seller and buyer communities and its team in India. Furthermore, the spokesperson assured us that Shopee will continue to make a positive impact on its global communities. Also, it is will focus on improving the lives of those who are underserviced via technology.
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To recall, the e-commerce firm largely adopted a mobile-first approach. Aside from this, it uses an asset-light strategy and functions as a pure-play online marketplace for both buyers and sellers. Moreover, the e-commerce firm told its sellers on Monday that it will be halting its India operation starting today, March 29, at 12.00 am (IST). In other words, placing new orders will be restricted from the aforesaid date. However, the Shopee’s dashboard for sellers will be active till May 30.
Singapore-Based Shopee Shuts India Operation
According to the note to sellers, the Shopee’s dashboard will allow sellers to withdraw their payment until May 30. For those who are unaware, Shopee primarily focuses on more affordable goods with notable discounts. It made its debut in India back in November 2021. Moreover, it gained a significant market share in various regions including Taiwan and Southeast Asia. Shopee was originally went live in Singapore in 2015, and it operates in seven other markets.
In the meantime, Twitter is prepping to hire more engineers for its Singapore regional office by next year. Shopee, on the other hand, decided to exit India after shutting its operation down in France in February 2022. The parent company of Shopee, Sea, had reported tough business conditions in India at the time of announcing its financial results for the year ending December 2021.
Interestingly, Sea owns the online multiplayer game Free Fire. The game was garnering huge popularity in India before the country banned it along with other 50+ apps from Google Play earlier this year.