Digital accounting startup OkCredit has decided to shut down its OkShop e-commerce enablement product in the coming months, according to three people familiar with the development.
OkShop has already stopped new app downloads as seen on Play Store. Launched in mid-2020, OkShop allowed small merchants to create online stores, build product catalogs, and share inventory and deals on WhatsApp.
Coach had exclusively reported on the product launch in September 2020.
OkCredit has confirmed the development of Coach.
“We removed it [OkShop] from the Play Store for new users. We continue to support existing users for the short term. In the medium term, we will support them in their migration to other platforms as they see fit,” the company said in a statement.
“This is part of our efforts to focus on our Fintech initiatives. We are deprioritizing and discontinuing certain products and features that do not align with our current priorities,” he added.
According to sources, the company will completely shut down the app in a few months.
OkCredit has become the second company in this space to shut down its e-commerce enabler app. In November, its great rival Khatabook also had announcement to close a similar app called MyStore.
The development comes at a time when OkCredit is struggling to raise a new round and has had to lay off 40% of its workforce to expand its track and scale down fintech initiatives. Entrackr had exclusively reported this on February 23.
OkCredit had lasted raised $67 million in its Series B in September 2019. Overall, it has raised nearly $90 million and competes with Khatabook, Vypaar, and a few others. OkShop was a direct competitor of PayU Dot, Dukaan and Bikayi supported by Sequoia. OkCredit’s move could just signal a buildup of fatigue in the category of small, merchant-focused apps, all of which seek to make life easier for merchants with a hazy blueprint for their own profitability or future earnings. The key premises, whether it’s merchants’ intent or ability to pay for such apps, or their loyalty to an app, are all up in the air for now, with no one coming close yet. a significant revenue stream, vis-à-vis their fundraising at least.
While the Tiger Global-backed company has completed five years of operations, it has remained a pre-revenue stage business with negligible revenue (Rs 3.80 lakh) from FY21 operations. the same period, OkCredit recorded a loss of Rs 109 crore.