MUMBAI: Typing out Thatspersonal. com on your computer screen while at work will most probably lead you to a page that reads ‘Access denied’. An online marketplace for adult pleasure and sexual wellness products is not considered healthy viewing, even for purely work reasons — a reflection of what some of these startups experience when they knock on investors’ doors: no love at all. Experts believe that a notion of cultural taboo along with legal concerns come in the way of adult products portals such as Thatspersonal. com, ImBesharam and ItsPleazure from raising funds from institutional investors, despite dynamics such as 100 per cent year-on-year growth and operating margins of over 30 per cent.
“I think it is unfortunate. But I think that the reason why large institutional investors balk at the space is due to moral and cultural issues of the taboo factor around the space and grey areas around legal compliance,” said Jaspreet Bindra, senior V-P at M&M and an angel investor in Thatspersonal. com, which sells products for adult pleasure in around 50 cities in India.
The legal concern is that there is no specific provision of law that addresses the use or import of adult products. “It is all covered under the general umbrella of Section 292 of the IPC,” said Lekhesh Dholakia, cofounder of Digital E-life that operates Thatspersonal.
“The enforcement authorities will use Section 292 and their interpretation of the law where they feel it applies. There is nothing in the Indian law that fits like a glove,” said Dholakia, who is also legal advisor to the ecommerce portal. ImBesharam has it slightly easier than its peers since the company is headquartered in AtlantaBSE 1.44 %, USA. The business, therefore,…