Indian Startups that failed in 2016


As per startup watchers, 80-90 % of startups are bound to fail. Here is a snapshot of funds Raised By Indian Start Ups in recent years  (figures in US $s)
•2014 2.9 billion
•2015 4.9 billion
•2016 3.8-4 billion

Source: Nasscom-Zinnov study

A percentage of these startups fail every year. In this section, we highlight some of the startups that failed in 2016.

“It’s good to learn from your mistakes.

It’s better to learn from other people’s mistakes.”

                                               -Warren Buffet

 

 

2016 Failed Startups

AskMeBazaar
Business Segment Consumer internet search
Closed August 2016
Reason for failure Cash crunch
Brief description about the company AskMeBazaar was aspiring to be India’s emerging Online Shopping portal that allows consumers to choose from various sellers offering a wide variety of Fashion and Lifestyle products.

Fashionara
Business Segment Online Shopping Portal
Closed May 2016
Reason for failure Unsuccessful in raising capital and unable to find buyers, eventually resulting in Cash crunch.
Brief description about the company Fashionara was an online shopping portal that offered merchandise from premium and luxury fashion brands across apparel, footwear and accessories.

Ladyblush
Business Segment E-commerce Portal
Closed 2016
Reason for failure Fierce competition and customer’s fleeting loyalty to other online shopping portals.
Brief description about the company Ladyblush was an India-based company that provided a wide range of fashion and accessories for women, including sarees and dresses.

Klozee
Business Segment Fashion portal, Apparel Renting
Closed August 2016
Reason for failure Due to slow demand and challenges faced by players in the pre-owned apparel sale and rental space in India.
Brief description about the company Klozee was an online fashion portal which allowed users to rent western and ethic women designer wear in Bengaluru. Failed to gain scale even after funding.

Purple Squirrel
Business Segment Education
Closed January 2016
Reason for failure Could not hit the targeted revenue or curb its cash burn.
Brief description about the company Purple Squirrel was an an education-technology company in Mumbai with a primary objective to organise industrial visits — either day-long workshops or week-long trips — for students of graduate colleges.

iProf
Business Segment Education
Closed 2016
Reason for failure Unable to find ways to monetize in a space where consumers are used to free stuff online, and building differentiated products and services.
Brief description about the company iProf India based in Noida, Uttar Pradesh delivered education contents, including videos, digitized notes, and practice questions through various devices

AutOnCAB
Business Segment Transportation App
Closed July 2016
Reason for failure Couldn’t sustain its business due to stiff competition from its heavily funded rivals.
Brief description about the company AutOnCAB was a mobile application based service focused on making daily commute a breeze. The company was running operations in six cities—Noida, Ghaziabad, Gurgaon, Kota, Chandigarh and Jaipur.

Frankly me
Business Segment Information Technology, App
Closed February 2016
Reason for failure Couldn’t sustain its business due to stiff competition from its heavily funded rivals.
Brief description about the company FranklyMe is a social media platform for video communication, to share experiences, stories and information through velfies (video selfies). It’s a tool which allows you express yourself in videos, without having to meet high video production expectations.

Zapmeal
Business Segment Food Delivery
Closed 2016
Reason for failure Lack of funding
Brief description about the company ZapMeal was an online meal order & delivery service matching hungry consumers with great local food preparers.

TinyOwl
Business Segment Food Delivery
Closed May 2016
Reason for failure Ran into operational troubles despite support from marquee investors. Issues include the high cost of logistics and a oversaturated market.
Brief description about the company TinyOwl Technology Pvt Ltd, a Mumbai-based food ordering startup. TinyOwl is an Android app that enables users to order food via their mobile devices. The startup claims that its app can detect the users’ locations and show restaurants in their vicinity.

BiteClub
Business Segment Food Delivery
Closed July 2016
Reason for failure Faced certain problems while scaling up.
Brief description about the company BiteClub was a marketplace to connect chefs and consumers. It had a daily changing menu that customers can order from via their mobile or the web app. The food is prepared by a curated community of home chefs, amateur chefs, and professional chefs.

Zeppery
Business Segment Food Delivery
Closed April 2016
Reason for failure Realised that this model is too early for the Indian market and bears high customer retention cost.
Brief description about the company Delhi-based startup Inweone Technologies Pvt. Ltd., Zeppery is a food pre-ordering app that allows you to order food beforehand from restaurants and food outlets in order to avoid long waiting time.

Dazo
Business Segment Food Tech
Closed October 2015
Reason for failure Owing to the stiff competition in the food tech market, the company had to look to invest in more capital to aggrandize their menu options, chef’s availability, outlets and on time delivery service, unfortunately the company failed to survive the battle
Brief description about the company Dazo (previously known as Tapcibo) used to be a food-on-demand service. But unlike regular food ordering service, Dazo had a curated menu with different varieties for breakfast, lunch and dinner. It used to aggregate meals from local partner restaurants and ensured the last-mile delivery to provide a hassle-free customer experience.

iTiffin
Business Segment Meal Delivery
Closed March 2016
Reason for failure Poor execution
Brief description about the company Online meal service provider iTiffin offered tiffin based on a defined calorie count requirement. The startup followed a subscription-based business model.

Localbanya
Business Segment Grocery Delivery
Closed October 2015
Reason for failure due to paucity of funds and the company was strapped to cash and maintained staff attrition was not unique to it.
Brief description about the company LocalBanya.com is an Indian-based online supermarket that offers all categories ranging from fruits, vegetables, groceries, and more with the main the objective of making groceries conveniently available to your doorsteps.

GrocShop
Business Segment Grocery Delivery
Closed June 2016
Reason for failure GrocTech Solutions Pvt Ltd, was late in entering the grocery delivery business and that its competitors grew faster therefore it failed to find a profitable growth model.
Brief description about the company GrocShop is the online hybrid retail platform, completely focused on ensuring shopping for daily essentials & grocery brands from the comfort of homes/offices or on-the-go and get orders delivered in mins-hrs, not days.

Pepper Tap
Business Segment Grocery Delivery
Closed April 2016
Reason for failure Spending too much on Marketing, failed to understand customers and categorise them, Discounting did not prove to be a sustainable business model, Only cash-burn, no or less cash inflow.
Brief description about the company PepperTap was an on-demand grocery delivery service company based in Gurgaon, India providing online shopping for groceries and household items, which included shopping via its mobile application.

ShopO
Business Segment Online Market
Closed February 2017
Reason for failure GrocTech Solutions Pvt Ltd, was late in entering the grocery delivery business and that its competitors grew faster therefore it failed to find a profitable growth model.
Brief description about the company ShopO allowed a platform to small and medium-sized businesses to chat, buy and sell on the platform on a zero-commission model.

Parceled
Business Segment Online courier booking
Closed June 2016
Reason for failure Forced to outsource delivery services after it failed to raise funds.
Brief description about the company Founded in 2014, Parcelled is an on demand courier service which picks and packs items from users’ doorstep and delivers them across the country. The users just have to schedule a suitable pickup time on their app and mention the courier pick-up location. Once the request is confirmed, a pickup agent will pack and pick up the item for shipping. Thereafter, users will get end to end tracking and delivery notifications of the item.

Truckmandi
Business Segment Truck Booking
Closed August 2016
Reason for failure Inability of technology alone to turn the sector around, conflicting interest of shippers and fleet owners and pain point of requiring truck on demand not pronounced.
Brief description about the company Truckmandi.in is an online truck booking solution, which simplifies the task of handling bulk transport with the help of technology.

Jewelskart
Business Segment E-commerce for Jewellery and Watches
Closed January 2016
Reason for failure Lack of funding, financial losses and low traction.
Brief description about the company A specialised online portal for fashion jewellery to want to target evolved Indian consumer by creating a platform wherein they can select from a variety of fashion jewellery coupled with quality and shopping ease.

GoZoomo  
Business Segment Used Car Sales
Closed December 2016
Reason for failure Failed to carve out a business model with sustainable unit economics, nearly half of the amount it raised so far will be returned to the investors.
Brief description about the company GoZoomo was a Bangalore based technology start-up pioneering in peer-to-peer transactions of pre-owned cars and providing a hassle free experience. Bridging the gap of information asymmetry and bring standardization in the fragmented pre-owned cars market.

Doormint
Business Segment Laundry
Closed September 2016
Reason for failure Costs of processing clothes, pick up and drop logistics, and packaging were difficult to recover through prices.
Brief description about the company Headquartered in the teeming metropolis of Mumbai, Doormint was conceived and founded in 2015 to provide doorstep home solutions at affordable prices. Focusing on amazing convenience and service quality, we aim to resolve the household grievances through our mobile app and online platforms.

Research assisted by Sanwar Tagra, who  is currently pursuing his Bachelors in Engineering at BML Munjal University. | You may review previous articles on Failed Startup |

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