Startups have been mushrooming in every segment now! Starting of a new business, scaling up and close down has become a part of the Indian startup ecosystem. In every segment, there are plenty of imitator business ideas that struggled hard to survive but eventually failed. If we just checkout 2016 data, bounty of startups opened and closed down in past eight months. A study done by Xeler8 revealed that in India nearly one in two startups shuts down.
Here is a list of some of these Indian startups who failed and forced to shut down operations because of poor business strategies or may be of any other reason. Here you can go for a quick review below:
Hyperlocal grocery marketplace LazyLad closed down its B2C business operations and cut down a large part of its workforce in Feb 2016! It was offering services in northern region and has raised around Rs 3.18 crore in its pre-Series A round of funding from Jai Choi, Tekton Ventures’ Founder and Managing Partner, Japan-based Sugashita Partners’ Kiyohiro Sugashita, and Japanese venture capitalist Hirokazu. It was launched by IITians Paresh Goel, Ajay Sethi and Saurabh Singla.
2. Delivree King
Delhi based Delivree King was founded in March 2015 by Neeraj Bisht and Akash Sharma. It was focusing on logistics and provided special offers with each of its delivered parcel from different e-commerce companies. It had funding issue and finally closed all business functions this year.
Once upon a time when PepperTap was known as India’s third-largest e-grocer, but it closed down its business operation in April 2016. The shutting down harmed employees as well as its sister concern logistic company NuvoEex – that has Snapdeal as a biggest customer. In the last month the number of processing orders was less and it forced managing team to take decision to close down the business operations. This startup was launched by Navneet and Millind Sharma in November 2014 and had raised funding in four rounds from Sequoia Capital, SAIF Partners, Snapdeal and others. It had also acquired another budding hyperlocal grocery marketplace – Jiffstore but all went in vain.
Bangalore based Fashionara, which was launched by former Reliance Trends CEO Arun Sirdeshmukh and Former Chief Technology Officer, Times Internet Ltd, Darpan Munjal in 2012 closed its business in May 2016. It has raised $4 million from Helion Venture Partners and Lightspeed Venture Partners and scaled business in apparel, accessories, and footwear segment.
Another hyperlocal on demand service provider, GetNow.at also closed down operations in June 2016. It was based in Nagpur and started by Jayesh Bagde in November 2014. It has raised an unknown amount of seed funding in July 2015 from Atulya Mittal, steel tycoon Lakshmi Mittal’s nephew but failed to tell the success tale.
Delhi-based e-grocery delivery service provider AAGAAR.com shut down its operation in the month of June. It was run by Asankhya Retail Pvt. Ltd and had raised an unidentified angel funding amount from a group of investors in June 2015. Saharawat , who worked with Shoppers Stop and HyperCITY earlier has launched this concept in November 2014 to deliver fresh daily essential things to the customers’ doorstep.
Another name in the failed startups list is FranklyMe! It was a video micro-blogging website founded by Abhishek Gupta and Nikunj Jain in 2014. It has raised $600k seed funding from Matrix partners. In another round, it has received an undisclosed amount from undisclosed investors. Despite the fact that it has been a well funded company, it failed to capture the market attention and closed down all operations in Feb 2016.