Digital bookkeeping startup OkCredit has decided to shut down its e-commerce enablement product OkShop in the coming months, according to three people aware of the development.
OkShop has already stopped fresh downloads of the app as seen on Play Store. Launched in mid-2020, OkShop used to allow small shop owners to set up online stores, create product catalogues and let them share inventories and offerings on WhatsApp.
Entrackr had exclusively reported about the product launch in September 2020.
OkCredit has confirmed the development to Entrackr.
“We have removed it [OkShop] from Play Store for new users. We are continuing to support existing users in the short term. In the medium term, we will support them in migrating to other platforms as they see fit,” said the company in a statement.
“This is part of our efforts to focus on our Fintech initiatives. We are deprioritizing and discontinuing some products and features that are not aligned with our current priorities,” it added.
According to sources, the company will shut down the app entirely in a few months.
OkCredit has become the second company in this space to shut down its e-commerce enablement app. In November, its arch-rival Khatabook had also announced to shut down a similar app called MyStore.
The development comes at a time when OkCredit has been finding it hard to raise a new round and had to lay off 40% of its workforce to extend its runway and narrow down on fintech initiatives. Entrackr had exclusively reported this on February 23.
OkCredit had last raised $67 million in its Series B round in September 2019. Overall, it has raised close to $90 million and competes with Khatabook, Vypaar and a few others. OkShop was a direct competitor to PayU-backed Dot, Dukaan and Sequoia-backed Bikayi. The move by OkCredit might just signal a build-up of fatigue in the category of small merchant focused apps, all of whom seek to make life easier for the merchants with a hazy plan for their own future profitability or revenues. Key premises, be it the intent or ability of merchants to pay for such apps, or their loyalty to an app, is all up in the air for now, with no one coming close to any significant revenue pathway yet, vis a vis their fundraising at least.
While the Tiger Global-backed company has completed five years of operations, it remained a pre-revenue stage venture with negligible income (Rs 3.80 lakh) from operations in FY21. During the same period, OkCredit had posted a loss of Rs 109 crore.