Are Tatas buying cash-strapped e-commerce venture Indiaplaza?

One of the country’s oldest e-commerce ventures Indiaplaza,which was on the vergeof shutting shop after failing to raise fresh funds, might soon bebought over by the Tata Group.

A ccording to a report by NextBigWhat,the Tata Group which already has large retail operations, is working on a deal to acquire Indiaplaza.

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Indiaplaza was launched as Fabmall.com in 1999 and was one of the first to enter India’s e-commerce business. However somewhere down the line it lost the plot and has been struggling with cash flows ever since.

Last month Tech Circle reported that it has already sent a notification to all its vendors for negotiating and settling their final dues. In other words, it was looking to clear all its liabilities.

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The last fund raising took place in 2011 when it raised $5 million from Kalaari Capital (then known as IndoUS Venture Partners). The company was expecting to raise the next round in mid 2013, but reports said it could not find an investor.

Previously known as Fabmall.com, Indiaplaza offers products like apparel, mobiles, books, home appliances, baby products, cameras, cakes, electronics, gift articles, home decor, health & beauty and sports products among others.

Even though the site is active , a lot of the products are ‘out of stock’.