While India remains one of the major spaces for entrepreneurial action, the startup boom might have taken a hit, especially during the COVID-19 pandemic.
As over 50,000 startups race to be the next unicorn, the numbers are not on the side of any new company. According to an IBM Institute finding, nine out of 10 startups in India are doomed to fail within the first five years.
Mumbai-based insurtech startup BimaPe has shut down within its first year after it failed “to reach its market-product fit metrics set in March 2021”.
Here are some other startups that shut shop in the past year:
Looking to emerge as a major player in the smartphone and smart home appliance market over the next 10 years, the company imploded last year even as it had secured $330 million in funding. Allegations of sexual misconduct and poor marketing issues pushed Essential over the edge.
Founded by Shruti Merchant, HubHaus’s failure could be directly linked to COVID-19 decimating the rental market. But the company had been facing funding issues prior to the pandemic. It had managed to raise only $11.4 million in Series A funding.
After raising over $1.75 billion, Quibi seemed to be too large to fail. The company had planned on releasing short-form content streamed only to mobile devices. But with perhaps too much on its plate, the company failed in every aspect before finally shutting down with very little to show for the funds it raised.
Starsky Robotics (2015-2020)
Sometimes companies can do everything right but still fail. Starsky Robotics was perhaps one such case. Its plans of releasing autonomously driving trucks seemed to be progressing well, but it failed to find investors even as it successfully tested the first fully automated truck to drive on a live highway.
Not all shutdowns are necessarily failures for startups. One of the first Indian companies to focus exclusively on the e-tailer space for clothing, Jabong.com was bought by rival Myntra, which was owned by Flipkart. In 2020, the company and portal were formally shut down so that Flipkart could focus exclusively on Myntra.
(Edited by : Anshul)
First Published: IST