India has been a fostering platform and a supportive infrastructure for copious startups in the past several years’
but in spite of million-dollar investment and years of preparation couldn’t protect themselves and disappeared as most of them were simply emulations of Western concepts. Another reason escalated behind the startup fail was an absence of technical revolution which led to investors limiting their funding. In the year 2016, the culpability came on the paucity of funds, but in the succeeding year, i.e 2017, the entire blame came on the scarcity of innovation and originality. Whereas in 2018, the startups failed to raise up further funding and in 2019, a combination of the above mentioned reasons lead to startup failure.
As per IBM – Institute for Business Value and Oxford Economics, 90% of the startups in India failed with first initial 5 years, lack of originality being the prime reason as reported in the News 18. India is battling to become the third-biggest startup environment in the entire globe, but the major startups are getting closed, unemployment rate has surged to another level. The major startups failure has been seen in e-commerce, food technology and logistics. If you are considering to commence your own startup, first open your mind and look around. The frequency of the failing of a startup is way too high. Here is the list of famous failed startups that closed down in India:
It was established in 2015, which worked on micro delivery business model to facilitate milk and groceries straight to your doorsteps before 7 AM. The company placed itself exclusively in an extremely competitive scenario where other competitors were combatting. Bangalore based dhoodhwala, discontinued their operations due to unrevealed reasons. In spite of the initial exhilaration in micro delivery startups, many specialists consider that such business strategy is not scalable.
The reason for the failure was, it failed to raise the following on funding and therefore couldn’t sustain its own.
The company incorporated in 2012, in Mumbai and was the only task-running and distribution service. It started as, “Get my poem” but later relaunched as RUSSSH in 2015 and later commenced its mobile application in 2016. The normal price to accomplish on the platform varied from Rs.300 to Rs.1500 as per the location, the value of the item to be delivered, travel time etc.
The reason for the botch was lack of capital to offer hefty discounts against players
Wooplr is a Bangalore based startup which commenced out as a fashion discovery platform in the year 2013. It gave a podium to collective sellers to start their store on the social media platform, add items from the catalogue belonging to Wooplr and start selling within in a minute. The company had above 1 lakh products and had collaborated with 300 brands. The startup whirled to complete social business model.
The reason for the failure was, the company was struggling to find the further stakeholders and negotiations for a merger nosedived.
LoanMeet was established in 2016, which is a micro-enterprise peer to peer loans market place that used to fund working capital requirement. The borrowers get loans of 15,20 and 30 days from multiple lenders and later can buy stock and pay back the startup. In return lenders also earn good return on their investment.
The reason for the downfall is, it failed to raise further capital flow.
is a mobile application which enables patients to communicate with their doctors and receive prescriptions and share reports as well. It is a cloud based, automatic medical record resolution, which enables a digital record of the patient’s files which can be retrieved from even remote locations.
The reason for failure is ineffective pivot
India is battling to become the third-biggest startup environment in the entire globe, but the major startups are getting closed, unemployment rate has surged to another level