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We come across thousands of start-ups in India. India has an aspiration of becoming the next Unicorn but very few succeed in just becoming profitable… leave aside being Unicorn! Have a look at Startups Failed In India.
Number 1 – ASK ME.COM
Ask Me.Com was in the online marketplace for an Indian consumer to find information related to anything and everything be it restaurant, travel, matrimony, jobs, education, mobile games, gadgets, and so on. It was founded by Sanjeev Gupta in June 2011. The Company raises nearly $300 million in funding from Malaysia-based Astro the all Asia networks and hellion venture partners. At its peak, the company was in 5 verticals namely-
- ask me.com search engine
- ask me Bazaar
- Delhi Commerce service furniture
- ask me grocery
- ask me pay
The company completely shut down its operation in 2017. The reason being despite having this huge funding, the company couldn’t become profitable. The problem with ASK ME.COM was instead of focusing on one thing and being known for that. They were trying to get an ape of every business. They were competing with Flipkart, Amazon, Pepperfry, BigBasket, Paytm all at the same time.
Number 2 – Tapzo
Tapzo is all in one app aggregator which allows users to access over 35 applications such as Flipkart, Amazon, Ola, Uber, bill desk, and many others through a single platform. Hence making the process of booking a cab ordering on Amazon and recharging your mobile phone simple and in one place. It was founded by Ankur Singhal and Vishal pal in 2010 not as Tapzo but as Akosha.
It was also introduced as a customer complaint platform where users can interact with brands and get their complaints to solve. Akosha was fairly successful but then In 2015 they also introduced HELPCHAT which worked as a personal assistant for the users. Sadly for them, this didn’t prove a successful app.
hence just a year later it was again renamed as Tapzo app aggregator. Since 2010 raise $35 million from investors like Sequoia Capital, American Express Ventures, and added speak, the company claim to have 5 lakh users. In 2018 crunch reported that Amazon acquired Tapzo for $40 million and merged its technology with Amazon pay to compare with Google pay and Paytm. It was sold for almost the same amount. hence no big returns for investors and founders.
Number 3 Tinyowl
Next is Tinyowl it’s a Mumbai-based food-tech startup founded by harshwardhan mundada, Saurabh goyal, Gaurav Choudhary, Shikhar Paliwal, and Anuj Khandelwal in 2014. Since the food tech space was rapidly growing at that time, the money was not hard to come by as it was witnessed with other food start-ups like food panda another. Within a period of one year from 2014 – 2015 tiny owl managed to raise $28.3 million in funding from notable investors like sequoia capital, matrix partners, and Nexus venture partners. since the food tech space was rapidly growing at that time, the money was not hard to come by…
Tiny owl rapidly onboard over 4000 restaurants, and expanded its services to 11 cities in the country. however, this rapid growth disturbed their finances. They failed to manage their finances well! The tiny owl Start-up failed to sustain such rapid growth in the long run. Later in 2016 Tiny owl was sold to Roadrunner.
Number 4 Justbuy Live
Justbuy live was a large-scale e- distributor which made a platform to connect brands with retailers and allowed the retailers to directly buy from the brands. This eliminates the need for the distributor in between. It was started in 2015 by Sahil Saini and Bharat Balachandran the beta version was launched in Bombay, Bangalore, and Delhi in November of 2015.
Thousands of retailers tested the service, after the successful trial run they launched their Android and iOS application On the first of January 2016 and started operations in 15 cities and within the first 30 days, they managed to add 25,000 retailers to the platform.
During the same time they raised $20 million in a Series A round of funding from Alpha Capital Advisors private limited, the money in their bank account started aggressive expansion. They experienced 1000 retailers on a daily basis and had 300% growth in a month. Despite this growth, In 2018 the company was shut!
Number 5- Fab Furnish.Com
The fab furnish was a Mumbai-based online furniture decor and home appliances store started by Vikram Chopra, Vaibhav, and Mehul Aggarwal in 2011. The company raised close to 30 million dollars of funding. They had added 75,000 – 20,000 daily visitors to their website. Despite the heavy funding, active user visiting their website.
The company was struggling! as they failed to fulfill the customer’s need. Customers were not happy with the quality of the product they receive. The site was filled with negative reviews and complaints about broken products being delivered and Delayed delivery with no replacement options.
Later start-up was acquired by the future group for just 2.2 million dollars.
Well, Failure is stepping to success, Every failed business model give us a lesson to learn. Which startup you know that failed? Lets us know in the comment or write to us.