B2C businesses played a large role in the rapid development

B2C businesses played a large role in the rapid development of the commercial Internet in the 1990s. Large sums of venture capital flowed to consumers in the form of free online services and discounted shopping, spurring adoption of the new medium.

When the capital markets turned sour, however, the B2C companies were among the first to fall, and they fell fast. Many companies tried to follow the herd of investors by undergoing a B2C to B2B makeover.

Can you think of any B2B brands that have tried and failed at becoming a B2C brand? Please include your source of information.

Solution

Tolexo, a sister concern of Indiamart, started as B2B firm and when the revenues started flowing in they thought of entering into B2C segment as well. This resulted in steep fall in revenues, investors’ money was getting dried up and in the end they had to face the music and 90% of the organization is closed and only 10% is functional so aa to achieve the break even and this is estimated to close in next 5 months.

Tolexo started in 2013 and then its founder Mr. Brijesh Agarwal said that this will do better business than Indiamart but it failed as it starting to enter the B2C sector.

Source: Techcircle