Philippine e-commerce firm CashCashPinoy, which is backed by Hera Capital, has decried news reports that it was shutting down its business, even as customers have taken to social media to complain about non-availability of its services.
News reports last week said that CashCashPinoy had shut down operations amidst complaints of selling fake goods as well as non-delivery issues. Some reports had even said that the company had filed for bankruptcy.
But the company, which was founded by Frederic Levy in September 2010, denied reports that it had shut down and instead told this portal that its “shareholders had decided to take it offline temporarily to update its technology and undergo a brand transformation exercise”.
It did not provide additional details as to when it will resume its operations post the restructuring.
CashCashPinoy serves like an online shopping club, providing a distribution and destocking channel for brands, distributors and an online access to goods at discounted price for shoppers.
But the future doesn’t look so certain for the Hera Capital-backed firm. This portal was unable to get a response from either the founder of CashCashPinoy or Hera Capital.
In fact, Frederic Levy’s LinkedIn profile indicates that he is no longer associated with the embattled company and that he had left the firm in January 2016 and currently serves as mentor at local venture capital firm Kickstart Ventures Inc.
According to Levy’s LinkedIn profile, CashCashPinoy had built its annual revenues to the tune of $8 million, and successfully raised $6 million from international investors and private equity firms during his stint as CEO from September 2010 to January 2016. But this could not be independently verified by this portal.
CashCashPinoy’s last known funding was by Hera Capital which had led a $2 million Series B round in November 2014.
“We would like to assure our customers that we are working closely with our active merchant partners to ensure that valid vouchers continue to be honored,” its statement to this portal added.
The latest media reports on the company have also referred to earlier allegations it had faced on selling fake goods.
It is not known if there are any new complaints on this issue. A local court in Makati City in 2014 had reportedly ruled in favor of CashCashPinoy over online complaints that it had been selling fake goods.
In a Facebook update on July 3 responding to online complaints that it had shut operations, the firm said it would address all issues.
The different statements and messages issued by the company so far appear to send mixed messages, with no clarity on its future.
Asked on the allegations that it had shut down operations, the company told this portal: “We are only encountering issue with our website as of the moment and we are still fixing it.”
At the same time, the message posted on its website, which is still offline, said: “We’re taking some time out from the spotlight to work on the new and revitalized CashCashPinoy. Stay tuned for our comeback and watch this space for the big reveal. See you soon.”