India, June 12 -- Mainstreet Marketplace, once a rising star in India's vibrant sneaker and streetwear scene, is now facing a severe crisis. The startup, which started as a YouTube channel by Vedant Lamba in 2017 and later grew into a major player in the 'hype-drop' economy, has seen its operations in Delhi nearly collapse.

Its flagship South Delhi store has closed, along with its warehouse located in Delhi's Chattarpur shutting shop. This leaves Mainstreet with no physical presence or logistics capability in the capital.

A warehouse visited by Inc42 had zero stock on hand, with just one employee present. "Seven to eight months ago, there used to be three to four employees here, plus a few more in the store. The racks were filled to the...