Trouble at UpScalio: The first domino in India’s roll-up-pocalypse?

Less than a month on from reports that US-based roll-up e-commerce unicorn Thrasio is preparing to file for bankruptcy, the cracks in India’s own e-commerce aggregator space are beginning to show.

According to court filings that The CapTable has accessed and three sources aware of the matter, Gurugram-headquartered UpScalio has been taken to the National Company Law Tribunal (NCLT) by two of its venture debt investors, Vivriti Capital and Northern Arc.

Both lenders have invoked Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate corporate insolvency proceedings against UpScalio. UpScalio co-founder and CEO Gautam Kshatriya confirmed the developments to The CapTable. “Northern Arc and Vivriti applied to take UpScalio into the Corporate Insolvency and Resolution Process (CIRP) because UpScalio was facing challenges in repaying our debt,” he said in a written response. Vivriti Capital declined to comment and questions sent to Northern Arc went unanswered.