Two major resignations at fashion and lifestyle portal Yebhi: two of the company’s co-founders have left the company, NextBigWhat reported. Nitin Agarwal, co-founder and a director on Yebhi’s board resigned from the company on January 25 as per filings BigShoeBazaar India made with the registrar of companies, retrieved by MediaNama, and Amarpreet Singh Sohal has been made Additional Director. Yebhi Co-founder and head of operations Rahul Jain has also put in his papers. Yebhi CEO Manmohan Agarwal told MediaNama that they’ve left to start their own own ventures.
This follows the resignation of board members Raul Rai, MD of FGPI and Suvir Sujan co-founder of Nexus Venture Partners in September 2013, which MediaNama had reported. Earlier, Manmohan Agarwal had told us that FGPI and Nexus had not written off investments and that they could still appoint someone to the board seats if they wanted. He had also said that the company has other investors such as Catamaran Ventures and Qualcomm.
Manmohan had earlier told us that the company plans to raise $30 million but, he told NextBigWhat that the company has no plans to raise funding. “While all the other companies are busy burning capital for top line growth, we just want to create profitability first and break-even. We are not planning on raising further rounds of investment,” he said.
In a call to Medianama, he confirmed the rumours of layoffs in the company and said that they were part of cost restructuring that has been going on at Yebhi. He refused to specify exactly how many people were let go, but said that the company has improved efficiency at various levels.
BigShoeBazaar had registered a loss of Rs 65.63 crore at the end of FY-13 up from a loss of Rs 47.16 crore at the end of FY-12, on revenues of Rs 88.62 crore in FY-13, up from Rs 47.1 crore in FY-12. Agarwal however said that the company has GMV of Rs 250 crore. In late 2013, Agarwal said, the company has brought down its cash burn to around half from last year, and “we are still sustaining our business,” Agarwal said, also suggesting that Yebhi has a cash burn of one-tenth or one-twentieth the cash burn of other e-commerce players.