(Source: Inside Retail Asia | 22 June 2016)
Ensogo Asia has closed down all of its online stores as the online retailer appears on the brink of collapse.
Following the resignation of its co-founder Kris Marszalek, the Singapore-based tech company said it will cut its financial support to its sales and marketplace business units in Indonesia, Thailand, Hong Kong and the Philippines.
“These business units will be shut down. All staff have been informed and communications will be made to customers in the coming days,” the company said in a statement.
Australian internet entrepreneur Patrick Grove founded Ensogo, formerly iBuy. Grove also established the online businesses iProperty and iCar under Catcha Group.
Recently the company reported growth averaging more than 100 per cent in the first quarter, after the launch of a cross-border marketplace business in January. It said the number of suppliers had skyrocketed from 3141 in the fourth quarter of 2015 to 13,599 in the first quarter of 2016. The first three months saw US$8.2 million in gross merchandise value.
As of the end of March 2016, however, Ensogo reported A$22.6 million (about US$17 million) in receipts from customers, while total cash was only A$17.6 million, a 64 per cent decline from A$29 million by the end of last year. Earlier this year the company, which is headquartered in Singapore and listed in Australia, laid off employees.