Flipkart Closes ANS Commerce Three Years Post-Acquisition

Flipkart, the leading e-commerce platform in India, has officially decided to shut down its full-stack e-commerce enabler, ANS Commerce, three years after acquiring it. The decision marks a significant shift in Flipkart’s strategic operations, as the company focuses on optimizing its business structure.

The Acquisition of ANS Commerce by Flipkart

Flipkart acquired ANS Commerce, a D2C-focused SaaS platform, in 2022 to enhance its e-commerce capabilities. The acquisition was aimed at strengthening Flipkart’s ecosystem by integrating ANS Commerce’s expertise in setting up digital storefronts, managing marketplace integrations, and handling e-commerce fulfillment and warehousing.

However, despite the initial optimism surrounding the acquisition, Flipkart has now decided to wind down ANS Commerce’s operations. The move comes as part of Flipkart’s broader restructuring efforts in preparation for its anticipated public listing.

Impact on ANS Commerce Employees

The closure of ANS Commerce has resulted in layoffs affecting several employees associated with the company. Reports indicate that the SaaS platform had around 110 employees at the time of its shutdown.

In an official statement, Flipkart assured that it is committed to minimizing the impact on employees by offering internal job opportunities, outplacement services, and severance packages. This effort is aimed at ensuring a smooth transition for all affected personnel.

ANS Commerce: A Brief History

Founded in 2017 by Amit Monga, Nakul Singh, Sushant Puri, and Vibhor Sahare, ANS Commerce played a crucial role in helping businesses establish their online presence. The startup provided a range of e-commerce solutions, including:

• Digital storefront creation

• Integration with leading marketplaces such as Flipkart and Amazon

• Marketplace management

• E-commerce warehousing and fulfillment solutions

Before its shutdown, ANS Commerce claimed to have fulfilled over 600,000 orders and had served prominent brands such as Razorpay, Arvind Fashions, Unicommerce, FedEx, Delhivery, Paytm, and PhonePe.

Funding and Investor Backing

Prior to being acquired by Flipkart, ANS Commerce secured $2.2 million in a pre-Series A funding round in 2021. The funding was co-led by prominent investors, including Gokul Rajaram and Venture Catalysts. Additionally, the startup had attracted investments from well-known entrepreneurs such as Kunal Shah (Founder of CRED) and Kunal Bahl (Co-founder of Snapdeal), alongside contributions from 100Unicorns.

Despite strong backing and a promising start, ANS Commerce ultimately failed to sustain its operations, leading to its closure under Flipkart’s ownership.

Flipkart’s IPO Plans and Business Restructuring

The decision to shut down ANS Commerce aligns with Flipkart’s ongoing efforts to streamline operations ahead of its planned initial public offering (IPO). Flipkart is reportedly working on listing its shares on Indian stock exchanges within the next 12 to 18 months.

As part of its IPO preparations, Flipkart has been making significant changes, including:

• Leadership restructuring to enhance management efficiency

• Cost-cutting measures to reduce cash burn

• Operational restructuring to focus on core business strengths

Growing Trend of Startup Shutdowns in India

The closure of ANS Commerce adds to the growing list of Indian startups shutting down despite securing significant funding. As per reports, at least 12 Indian startups ceased operations in 2024 alone, reflecting the challenges faced by the startup ecosystem.

Notably, Ashneer Grover-led fantasy cricket platform CrickPe also shut down earlier this month. The platform struggled amid regulatory uncertainties, particularly regarding Goods and Services Tax (GST) policies for real-money gaming businesses.

Conclusion

The shutdown of ANS Commerce highlights the evolving dynamics of the Indian startup landscape, where even well-funded ventures can struggle to sustain themselves. Flipkart’s decision to discontinue ANS Commerce underscores the importance of strategic realignment as businesses prepare for long-term growth and sustainability.

As Flipkart gears up for its IPO, the company is likely to continue making strategic decisions aimed at optimizing its business model and reinforcing its market position.