<article><a style="color: #000080;" href="http://www.ensogo.com/">Ensogo</a>, one of Asia’s leading flash sales e-commerce sites, announced that it is shutting down all its marketplace units in Southeast Asia. The company did not give any reason or clarify the situation to its customers and partners.</article>

<a style="color: #000080;" href="http://www.ensogo.com/">Ensogo</a>, one of Asia’s leading flash sales e-commerce sites, announced that it is shutting down all its marketplace units in Southeast Asia. The company did not give any reason or clarify the situation to its customers and partners.
The official statement said, “Ensogo will no longer provide financial support to its subsidiary Southeast Asian flash sales and marketplace business units. These business units will be shut down. All the staff have been informed and communications will be made to customers in the coming days.”
The statement also cited that the board has accepted the resignation of Kris Marszalek, who has been CEO of Ensogo since August 2014.
“These decisions have been made to preserve the company’s cash for new investment opportunities,” the company stated.
The sudden announcement has stumped the company&#8217;s customers and suppliers.  Pachara Toorakidsana, one of Ensogo’s customers, said that the company should have immediately informed how it would return money to the customers. A few Thai customers also posted on Ensogo Thailand’s Facebook page today that restaurants have rejected the coupon they bought from Ensogo.
Ensogo, formerly known as iBuy, was founded by Australian internet entrepreneur Patrick Grove, who also established other online businesses such as iProperty and iCar under his Catcha Group’s umbrella.
The company had recently reported a monthly business growth averaging more than 100 per cent in the first quarter, after the launch of a cross-border marketplace business in January.
According to the report, the number of suppliers had skyrocketed from 3,141 in the fourth quarter of 2015 to 13,599 in the first quarter this year, delivering $8.2 million in cumulative gross merchandise value sold through a marketplace during the first three months.
However, it reported A$22.6 million (about $17 million) in receipts from customers as of the end of March 2016 while total cash was only A$17.6 million, a sharp fall from A$29 million by the end of last year &#8211; a warning sign to cut the costs and increase the liquidity.
In the beginning of this year, it cut down the number of its employees from 600 to below 300, following its transitioning into a technology-driven platform.
Headquartered in Singapore and listed on the Australian bourse, it has the operations in Hong Kong, Singapore, Malaysia, Thailand, Philippines and Indonesia. It claims to have over 600 million customers across the region.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/33705-33705/">Ensogo hires Zalora co-founder, HappyFresh sets up Philippines office</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/ensogo-raises-27m-from-conditional-placement-5446/">Online retailer Ensogo raises $27m from conditional placement</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/ensogo-to-raise-7-6m-from-hks-ward-ferry-via-share-placement-4023/">Ensogo to raise $7.6m from HK’s Ward Ferry via share placement</a>

Ensogo, one of Asia’s leading flash sales e-commerce sites, announced to shut down all its marketplace units in Southeast Asia.

Cheap-deal platform Ensogo shuts down SEA ops

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Cheap-deal platform Ensogo shuts down SEA ops

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief