Womenswear e-tailer Stalkbuylove is facing a funding crunch as it finds itself running out of cash.
The company started facing monetary issues 6 months ago as the last round of financing that was to be led by a German fund fell through.
After running out of cash, the founders of the company are now absconding without having cleared dues and halting deliveries. Customers, influencers and vendors are taking to social media to voice their concerns and protest against this move.
The company has been receiving complaints from customers since June regarding orders not being processed and delivered even after taking money.
Many small e-commerce retailers have been facing issues and shutting shops ever since Shein and Club Factory took away a large portion of market share.
Many bloggers and influencers had called out the company for refusing to pay them for assignments done months before. This elicited a response from the founders, saying that the investors had put them in a‘tight spot’.
Founded in 2012, Stalkbuylove was backed by the likes of venture capital fund Kalaari Capital,500 start-ups and Germany-based Littlerock.
The startup had raised US $10 million in its lifetime in addition to raising a debt of Rs. 6 crore from Trifecta Capital through non-convertible debentures in 2017. Before that, it raised capital worth Rs. 36.2 crore at a valuation of Rs. 143.4 crore. Kalaari Capital led the round with an investment of Rs. 26.8 crore.
