Once a group buying site, then an e-commerce venture, Taggle.com appears to have shut shop. The site, which was reported to have raised $8.5 million Battery Ventures and Greylock Partners, has a note up on its site informing readers that it is shutting down, because it doesn’t want to get into the Last-Man-Standing game (Hat tip: Kashyap Deorah). The note states that the e-commerce business has been shuttered and that they’ve “decided to go back to the drawing board to figure out the best way forward.” It also mentions that Taggle was begun with $1 million in funding. Pluggd.in reported in August that Taggle CEO John Kuruvilla had resigned.
Well, it probably won’t be long before the e-commerce boom dies down – yes, transactions are increasing but with more and more sites being launched, and fragmentation in the market, many will die. Investors like Accel Partners have invested in multiple e-commerce ventures, probably hedging their bets, and hoping that a few successes will cover losses in the rest, and multiple ventures will help create consumer demand. It’s also possible that Taggle failed to raise more money and its investors decided to cut their losses.
The note on taggle.com (screenshot):
We have decided to cease our ecommerce operations effective immediately. We will not be taking any more orders from our users.
We started Taggle in June 2010 with US$1M in funding to build a sustainable and profitable business by getting the best service and product deals for our users. We have always believed in providing superior experience and value to our users. When we realized that service deals were not giving the best value to users, we quickly shifted focus to only products. Our users responded very positively to the shift and it reflected in our revenue numbers too, we grew our revenues 10 times within 3 months of the shift.
However, the current market conditions have many ecommerce players selling products at below cost price to lure users. The only way to sustain the business at this time is to get into a price war and burn a lot of investor money and try to outdo competition in a Last Man Standing game. This practice goes against our philosophy of building a sustainable and profitable company. Hence, weve decided to go back to the drawing board to figure out the best way forward.
We thank all our users who have shown trust in us and supported us with their business.
In case you have any questions or want to reach out to us we can be reached by email at firstname.lastname@example.org