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Online shopping platform Poshmark informed customers that it will be shutting down its India business on October 26 in order to focus on its North America business and drive growth in its core markets.
The US-based e-commerce firm, which specialises in the sale of second-hand products, started its India operations in September 2021, as part of a wider international expansion into markets such as Australia.
Poshmark allows users to sell used or unused clothes and charges a commission on every sale.
The company in its FAQ mentioned that it is exiting India to focus more on North America business.
“In order to focus on Poshmark’s North America business and drive meaningful growth in its core markets of the United States and Canada, the company has made the difficult decision to close the Poshmark marketplace in Australia, India, and the UK,” the website read.
The website further read that beginning November 1, 2023, buyers and sellers for India, Australia, and the UK will no longer have access to the marketplace via the app or web. The website stated that Poshmark will continue processing return requests for orders made before October 26, 2023.
However, the startup has been witnessing its user base dwindle for sometime now.
The development comes almost a year after Naver, a South Korean giant, acquired Poshmark at a marked-down valuation of $1.2 billion. Poshmark was once valued at $7.3 billion.
“I know this is especially hard news for those of you across the globe who have come to know and love Poshmark—please know that I’m incredibly grateful for you and for the community that we’ve built together. We hope to be back at some point in the future,” wrote Manish Chandra, co-founder and chief executive of Poshmark, in a blog post.
Poshmark has become the second major company to shut shop in India. In March 2022, Singaporean e-commerce firm Shopee shut its operations in India, just six months after entering the country.
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