Fireside Ventures-backed 10Club files for insolvency as debts mount
According to RoC filings, 10Club is moving for insolvency as its assets are not sufficient to pay off its debts.
Thrasio-style ecommerce marketplace 10Club has initiated insolvency proceedings before the National Company Law Tribunal (NCLT).
According to the filings made with the Registrar of Companies (RoC), the Fireside Ventures-backed startup has proposed to file an application to initiate the Corporate Insolvency Resolution Process before the tribunal's Bengaluru bench.
It said it is moving for corporate insolvency as its assets are not sufficient to pay off its debts.
Founded by Bhavna Suresh, Deepak Nair, and Joel Ayala, 10Club shot to fame after raising $40 million in seed funding in 2021, one of the largest seed rounds in the ecosystem. In 2022, it raised another $30 million in another round from US-based Olive Tree Capital and returning investors.
The startup worked on a roll-up ecommerce model by focusing on small businesses and startups, acquiring them, retaining a small team, and scaling the product.
In October 2023, the company announced a ‘strategic pivot’ to create a consolidated brand for the home and kitchen category from its direct-to-consumer roll-up model.
In January last year, 10Club on-boarded Kavitha Rao as co-founder and chief operating officer to lead category and retail expansion.
The model is yet to see long-lasting success stories, as earlier this year, Good Glamm Group sold its brands back to founders and to sellers for pennies compared to the acquisition prices.
(The copy was updated to correct a typo.)
Edited by Kanishk Singh