Flipkart has formally announced that it has shut down ANS Commerce, the SaaS company it acquired in 2022 to improve its D2C capabilities. After ANS Commerce’s tenure under Flipkart ends on March 31, 2025, the company will no longer be operating.
Impact on Employees
Many are worried about job losses as a result of the closure; according to media sources, about 200 people would be impacted. The exact number has not been released by Flipkart, but the business has promised affected staff severance payouts, internal placement opportunities, and outplacement support to help them through the change.
“This morning, a representative from Flipkart informed us that ANS Commerce would cease operations after March 31st,” was the message shared on LinkedIn by an impacted employee. Suddenly, more than 200 skilled workers were out of work, with only a severance payment to help them get back on their feet.
Nearly 600 individuals were employed by ANS Commerce at the conclusion of the fiscal year 2022.
Background of ANS Commerce
Founded in 2017, ANS Commerce provided full-stack e-commerce solutions for brands, including online marketplace management, digital storefront tools, and order fulfillment services. It catered to prominent companies such as Razorpay, Arvind Fashions, and Unicommerce.
Before Flipkart’s acquisition, ANS Commerce raised approximately $2.2 million in a pre-Series A funding round in 2021 from investors such as Gokul Rajaram, Venture Catalysts, Kunal Shah, and Kunal Bahl. The company reportedly fulfilled over 600,000 orders annually.
Potential Reasons Behind the Shutdown
While Flipkart did not provide an official reason for discontinuing ANS Commerce, industry analysts speculate that the move aligns with the company’s cost-cutting strategies ahead of a potential initial public offering (IPO) in the next 12 to 18 months.
The decision underscores the evolving priorities of Flipkart as it fine-tunes its business strategy in an increasingly competitive e-commerce landscape.
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