E-commerce Marketplace Aggregator 10Club Faces Insolvency
E-commerce marketplace aggregator 10Club, which previously garnered one of the largest seed rounds in India, is facing challenges in establishing a sustainable business model. Backed by Fireside Ventures, the company is reportedly moving towards closure by initiating insolvency proceedings at the National Company Law Tribunal (NCLT), Bengaluru Bench.
Insolvency Proceedings and Regulatory Filings
A regulatory filing from the Registrar of Companies (RoC) indicates that the shareholders of Boxseat Ventures Private Limited (10Club) have approved a special resolution to pursue insolvency under Section 10 of the Insolvency and Bankruptcy Code, 2016. The filing reveals that 10Club currently shows signs of insolvency, as its assets are insufficient to settle its outstanding debts.
Interim Resolution Professional Appointed
Srilakshi Purushottam has been designated as the Interim Resolution Professional in the Corporate Insolvency Resolution Process (CIRP) application, with multiple legal advocates assigned to represent the firm during the proceedings.
Operational Changes and Website Status
Reports suggest that the firm has taken down its website and halted all social media engagement. Startup Superb was also unable to access the 10Club website during this time. Despite attempts to reach out, inquiries directed to 10Club went unanswered until after the publication of this article.
Strategic Shifts and Leadership Changes
Initially launched as an e-commerce roll-up firm, 10Club made a strategic shift in October 2023 to focus on consumer branding in the home and kitchen product sector. In January 2024, the Bengaluru-based company appointed Kavitha Rao as the new Chief Operating Officer and co-founder. After reaching out to Rao, it was confirmed that she departed from the firm at the end of January.
Funding History and Investor Interest
10Club captured significant attention in 2021 by securing its record seed funding of $40 million, led by Fireside Ventures, making it one of the largest rounds in the Southern Asian market. Additionally, the company was reported to be in discussions to raise another $30 million from Olive Tree Capital in 2022.