A Startup Company is an entrepreneurial venture which is fastly growing in the world and especially it is becoming more popular in India and it is also a risky venture. But do you know some Indian startups companies are shut down very earlier this year? Here are the 10 Indian startups which get shut downed last year.
1st Failed Startup:
Finimina facilitated small-ticket loans to students and professionals for buying electronic devices and appliances. In March 2016 Finomina had raised seed funding from matric partners and angel investors. With all these achievements and success in a short span of time the question arises that, why they failed.
The reasons for the failure of this one of the startup from failed Indian startups:
- High cash burn
- Lack of series funding
- High compaction with rival company (One of the biggest competitor of Finomina was Zest Money).
2nd Failed Startup:
Turant delivery was interested in logistic which was helps customers to book and more it than monitor their deliveries. Their service was so fast and also they received more than 1 Crore Rupees As a seed funding from the group of undisclosed investors. But that funding was not enough for this company to service in the market. As this type of Indian startups requires a large amount of working capital and they were unable to raise more funds. It was inadvisable to burn their own money blindly so they forced to shut down their business in May 2017.
3rd Failed Startup:
In 2012 Nidhi Gurnani and Nikhil Wason started this company. Cashback used to give the reward points to the users while using cards for payment, this company was also proving the cash back and discount offers on the payment to their customers. After two years of their success journey they were managing to raised funds around 170000$ from three investors these were Sunil Karla, Alok Mittal and Rajan Anandan in June 2014. But on 2017 Cardback get shut downed. After the research we found that after 2014they were unable to grab further funds for their startup and other measure challenge was that, Card back was having less demand for multiple credit card.
4th Failed Startup:
Auto Raja was an auto rickshaw provider which was started in Chennai. It was founded by Anubhav Agarwal and Aishwarya Raman In 2013. The main motive of this company was to provide auto to customers with the help of call, SMS, Whats App and from Auto Raja Application. Due to lake of funds and instability to sustain the competition, this startups shut downed with service in January 26.
5th Failed Startup:
This Startup idea was innovating and new in the market. They were offer personalized greeting cards according to the customer’s taste like card size, color and photos. In December 2014 Inks Edge received 1.5 million dollars (Rs. 9 Crore) seed funds from New Enterprises Association, Pinnacle Ventures and another one company to make this unique startup happens. But on 14th May 2017, they shut Downed their startup
6th Failed Startup:
Yumist’s main aim was to provide hygienic home-style cooked food service. There are many peoples out there who live away from their home and miss their home substandard food, and Yumist wanted to fill those gaps. In 2015 Yumist raised two funding that is one in February which was about 1 million dollars and Second funding they received in December which was 2 million dollars means Yumist raised subtotal 3 Million dollars. But on September 2017 Yumist closed their operation.
7th Failed Startup:
Overcart was first India’s E-commerce marketplace where you can buy preowned products. They got three angel investments. There was two main reasons for shutting down this startup that first was, the service was so crappy. The customer’s complains was they were not receiving the products on time. And the second one was the product’s quality was too cheaper and low which was one of the main reason for shutting down this startup in 2017.
8th Failed Startup:
Splitkart was helping to the users to split bill equally and even planning group outing. It was good for kind of friends who doesn’t want to spend money alone while group eating. Luckily they were successful in raising un-disclosable funds from former Snapdeal product head Anand Chandrashekharan, GSF India Founder Mr. Rajesh Sawhney, People Group Chief executive Anupam Mittal, MD of Macquarie Capital India Mr. Gaurav Gupta and IndiaMart SEO Mr. Dinesh Agarwal. So many famous investor was invested in this startup. But sadly they just shut downed their startup in June 2017, two years after their funding. The reason behind this shut down is not clear yet. That may be cash crunch.
9th Failed Startup:
It is India’s first startup which gives guarantees to provide hotel room at last minute plan. They got around 1.5 Million dollars of seed funding in December 2015. But sadly they closed their operation in Feb 2017. And the reason behind the shutdown was the fund crunch so finally they decided to shut it down.
10th Failed Startup:
Dial A Celeb,
This was one of the unique startup which was promises to connect fans to their favorite celebrities through chats, special messages or video chat. It was a celebrity engagement provider to customers. But unluckily Dial A Celeb get closed in only within 5 months after the startup on May 2017.
So these are some Indian startups which get failed.