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Flipkart is shutting down ANS Commerce, acquired for $35-40 million, and laying off its staff. Despite a 39.4% revenue increase, ANS Commerce’s net loss widened to Rs 73.8 crore in FY24.
Flipkart shuts down ANS Commerce business.
Walmart-owned Flipkart is shutting down its full-stack e-commerce enabler, ANS Commerce, three years after acquiring the Gurugram-based company. According to a report of Entrackr, Flipkart is closing ANS Commerce and laying off its entire staff, stating that ANS Commerce was acquired for Rs 250-300 crore ($35-40 million).
As per report, a Flipkart spokesperson confirmed the closure, stating that the decision was made after careful consideration. The company aims to ensure a smooth transition for stakeholders, including offering internal opportunities, outplacement services, and severance packages to affected employees.
ANS Commerces
Founded by Amit Monga, Vibhor Sahare, Sushant Puri, and Nakul Singh, ANS Commerce provided services like store tech, performance marketing, and warehousing to over 100 brands, including Jack & Jones, Vero Moda, HUL, and Lakme. The company had previously raised $2.2 million in a pre-Series A round in 2021.
Financial Performance Of ANS Commerce
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 shut down the e-commerce enabler.
Walmart acquired a majority stake in Flipkart, allowing them to significantly influence the company’s operations while still maintaining the Flipkart brand.
