Askme Group, which runs an online commerce business, has shut down its operations following non-payment of dues from its parent firm Astro Group. While the Askme Group’s e-commerce portal, Askmebazaar, is functional, fresh orders cannot be placed.
A message on the checkout page says, “We are not accepting any orders at this moment. We will be back soon. Thanks.”
Kiran Murthi, CEO of Askmebazaar.com did not answer calls made by FE. According to sources in the company, the deal with new investors is likely to close next week, after which operations are expected to resume.
A statement by the Askme Group said, “Astro which owns 99% of Askme through various shell companies is trying to flee the country without paying employees and vendors and statutory authorities in Askme and other companies. They are already charge sheeted for fraud and arm twisting by CBI and ED in the 2G case. They have been harassing and intimidating and threatening top employees to aid in their illegal acts which they have resisted and resigned. Employees have given an MBO offer to save the company and various new options which Astro is trying to block and place totally unreasonable demands from the management and their new backers. We request Indian authorities to ask Astro to pay their dues as per written commitments and let the MBO happen for the future of the company.”
In addition to Askmebazaar, the Askme Group also runs business in verticals such as payments (AskmePay), furniture (Mebelkart) and grocery (Askme Grocery).
FE had reported on August 10 that AskMe, owned by Getit Infomedia has not cleared the payments of its sellers, apart from the salary of its employees and other dues since January 2015 totalling $50 million.
“This is due to non-clearance of payment by the company’s single largest investor Malaysia-based Astro Overseas,” Manav Sethi, group CMO and head digital, AskMe Group had said.
Astro Overseas, owns 98.5% stake in Getit Infomedia.
“Astro controls and runs the company. We have made a management buyout proposal (MBO) to Astro earlier this year. Astro which was supposed to sign the papers in July is neither exiting the business nor infusing fresh fund. This way it has also blocked our chances of getting new investors,” Sethi had said.
Sources said that while three people from the management are keen to buy out Astro’s stake, unitl it signs the agreement of management buyout offer (MBO), Askme will be unable to bring fresh investors onboard.
In August, 2014, the Central Bureau of Investigation had filed a charge sheet against Astro regarding acquisition of shares in Sun Direct TV besides for its involvement in the Aircel-Maxis case.
A statement issued by Astro Entertainment Networks (AENL) said that the company “has, since 2010, made substantial investments in Getit InfoServices to participate in and support India’s fast growing e-commerce industry.
AENL made sustained and long term investments in Getit totalling nearly $300 million to date to keep the business afloat during often volatile market conditions.
Unfortunately, Getit has not been able to make its business profitable and sustainable despite these huge investments by AENL.
An independent review by advisors has concluded that there is little prospect for turnaround and the business is insolvent. AENL intends to appoint a forensic auditor to review Getit’s books and will take appropriate steps based on the results of that audit.
Contrary to recent media reports, AENL has always been a responsible and patient investor in Getit over the last six years making every effort possible to support the business even as other investors withdrew.
AENL has at all times been fair, scrupulous and professional in its dealings with the management of Getit. AENL will continue to act responsibly and in accordance with Indian laws over this matter.”