Yet another e-commerce firm has come unplugged. New Delhi-based Fashion and You has shut down online beauty retailer Urban Touch, a site it had acquired for a reported $30 million nearly six months ago.
Fashion and You CEO Abishek Goyal, who joined the company when it acquired Urban Touch last August, will also step down, according to sources.
Urban Touch will be integrated with the operations of Fashion and You, which had raised $40 million in 2011 in a round of funding led by Norwest Venture partners, according to a company notice.
At the time of the acquisition of Urban Touch, however, Mr. Goyal had said both portals would continue to operate as two distinct websites. “These restructuring decisions could be coming in order to make the deck clear for a possible merger with Mumbai-based Pepperfry,” said a source.
This move marks the continued turbulence of the e-commerce segment, with companies running out of cash, investors merging their e-commerce portfolios, and the legality of some business in question due to foreign direct investment policies.