Social commerce startup Trell exits AppsForBharat amid funds crunch

 
Trell, lifestyle-focussed social commerce platform, has sold its 10 per cent stake in devotional and spiritual content company, AppsForBharat for $8-9 million, two sources aware of the development said. The exit comes at a time when Trell has been facing a huge cash crunch. Its next fundraise is also stalled as the company co-founders are currently facing a probe ordered by its board of directors. BusinessToday.In earlier reported quoting sources that Trell is likely to lay off nearly 300 employees 50 per cent of its workforce across various India offices.
 
A Trell spokesperson said that the company will issue a statement shortly on the new development. The copy will be updated as and when the firm responds to BusinessToday.In’s queries.

A top official within the company told BusinessToday.In on the conditions of anonymity that the final report pertaining to the audit is yet to be submitted to the board and that the company will undergo restructuring, which will make several roles redundant.

Trell was reportedly in talks with e-commerce giant Amazon to raise $150 million after securing two rounds of investments from a clutch of investors last year.

The start-up, which is valued at nearly $130 million, had raised $45 million in a Series B round in July, 2021 onboarding new investors including Mirae Asset, H&M Group and LB Investments, and raised a cumulative capital of $62 million till date, as per an earlier company statement.

“Despite raising a significant amount in just four years since its inception after it pivoted to social commerce from a blogging site, Trell’s cash burn/financial irregularities may have spooked investors,” a start-up venture capitalist, preferring not be named, said.
              
In August 2020, Trell also launched its social commerce section on the app, enabling users to watch personalised product recommendations across beauty, personal care and wellness categories that they can buy from within the app.
 
In the last few months, Trell has onboarded over 500 personal care and beauty brands, with the most recent addition of Maybelline, L'Oréal and Garnier. Growing exponentially since its inception, Trell claimed a 15x year-on-year growth and 30 per cent month-on-month growth on its transactions.