Once a rising star in India's thriving streetwear and sneaker scene, Mainstreet Marketplace is currently dealing with a serious dilemma.
The Delhi-based firm, which began as a YouTube channel in 2017 and eventually developed into a significant force in the "hype-drop" economy, has seen its operations all but fail. Both its main store in South Delhi and its warehouse in Chattarpur, Delhi, have closed.
As a result, Mainstreet has neither a physical location nor the capacity to handle logistics in the capital. A media group visited a warehouse with only one staff member and no stock on hand.
One of the staff members told the visiting media outlet that three to four employees used to work here seven or eight months ago, in addition to a few more in the store. Every day new orders arrived, filling the racks to overflowing. Everything is gone now, though.
Lamba gave the media outlet confirmation of the scenario when questioned. 'It is true that we have moved our warehouse to Mumbai,' he said. We have cash flow issues and haven't been able to raise capital from investors.
What Let to the Downfall of Once “The Go To Brand”?
After a pre-seed round, Mainstreet raised $2 million (about INR 16 crore) at the height of the sneaker craze in 2023, drawing some of India's most renowned angel investors.
After 2022, it boasted an impressive list of angel investors, which included the creators of Zerodha, Nikhil and Nithin Kamath; Deepinder Goyal, CEO of Eternal through First Lap LLP; Sujeet Kumar, co-founder of Udaan; Amarjit Singh Batra, MD of Spotify India; Badshah, singer; comedian Tanmay Bhat; and Kunal Shah, founder of CRED.
After receiving the money, Mainstreet Marketplace wanted to expand its offline retail presence outside of Delhi and Mumbai by adding a seasoned senior leadership team.
However, the business started making significant marketing investments shortly after receiving money. A media report stated that shortly after obtaining money, the startup took part in Zomato's Zomaland 2024 event, where it worked with celebrities like Badshah.
Mainstreet claimed to be the biggest marketplace in Asia at the time, showcasing about 5,000 trainers. The majority of them, according to a media report, were provided by resellers who were due money for the shoes.
Paying High Salaries, Constant and Rapid Burn Out Rates Added Pain to the Agony
Following the fundraising, the startup's expenses also rose quickly. A data entry operator in a warehouse was paid over INR 50,000, which is significantly more than the industry average of INR 15,000–INR 20,000, according to a media report.
A media report went on to say that the business had been paying rent for a printer for over a year, which ultimately cost the business more than twice the printer's retail price.
According to allegations, Mainstreet compensated new grads between INR 1 Lakh and INR 3 Lakh a month, which was more above the industry average.
Original Article
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