The Indian startup ecosystem has grown significantly in recent years, leading to projects like the Startup India scheme and improved availability of start-up funding. However, now not every startup achieves success. This article is about 10 failed Indian startups, you will also get to read the reasons behind their failures. Understanding those cases can provide precious insights for marketers with startup ideas in India, supporting them in avoiding common pitfalls. In this blog, you will get an insight about some Failed Indian Startups.
LIst of 10 Failed Indian Startups
It is not important that every startup succeeds, there are many failed Indian startups.
1. AskMe.Com
AskMe.Com is one of the failed Indian startups, a nearby seek and an e-commerce platform that aims to provide all results of all queries and demands for Indian consumers. Despite initial success, start a Successful startup shut down in 2016.
Reasons for Failure
Funding Issues- The number one cause for AskMe’s failure was its inability to secure continued investment from its principal investor, Astro Holdings, leading to a severe cash crunch.
Management Disputes- Internal conflicts and mismanagement worsen the monetary issues, resulting in the eventual shutdown.
2. Stayzilla
Stayzilla was one of the first online systems in India to provide homestays and budget accommodations. It aimed to provide a completely unique journey experience via connecting tourists with neighborhood hosts. Even with its success in the start, it became one of the failed Indian Startups.
Reasons for Failure
Operational Challenges- Stayzilla struggled with excessive operational expenses and a fragmented marketplace, making scaling difficult.
Cash Flow Problems- Despite securing substantial funding, the organization faced cash flow problems due to high advertising fees and low margins.
3. TinyOwl
TinyOwl became a meals shipping startup that aimed to offer a convenient ordering experience through its mobile app. At its peak, it operated in multiple cities throughout India.
Reasons for Failure
Overexpansion- TinyOwl improved too fast without a stable operational foundation, leading to logistical challenges.
Competition- Tough competition from industry best players like Swiggy and Zomato made it hard for TinyOwl to accumulate marketplace shares.
4. Dazo
Failed Indian Startups Dazo started as a web meals shipping carrier supplying curated food from nearby kitchens and eating places. It aimed to provide a convenient eating solution for busy urban specialists.
Reasons for Failure
Limited Market Understanding- Dazo a Failed Indian Startups underestimated the complexity of the food transport marketplace and overestimated demand.
Funding Issues- The startup struggled to stable additional funding to scale operations and compete with large opponents.
5. Peppertap
Peppertap became a grocery transport startup that aimed to revolutionize the way people shopped for groceries by providing quick and handy shipping services.
Reasons for Failure
Operational Inefficiencies- The company faced severe logistical challenges and excessive operational fees.
Customer Acquisition Costs- High advertising and marketing and other additional expenses outweighed the sales generated, mainly to unsustainable losses.
6. Fashionara
Fashionara turned into an internet style retail startup that aimed to provide a wide range of apparel and accessories. It sought to create a spot in the crowded e-trade marketplace.
Reasons for Failure
Poor Market Positioning- Fashionara failed to distinguish itself in a highly competitive marketplace dominated by players like Myntra and Jabong.
Funding Issues- Inadequate investment prevented the business enterprise from scaling and competing efficiently.
7. FranklyMe
FranklyMe became a social video platform that allowed users to share video messages and engage with celebrities and influencers. It aimed to tap into the growing fashion of video content consumption.
Reasons for Failure
Lack of User Engagement- The platform failed to attract and retain a substantial consumer base.
Monetization Challenges- FranklyMe struggled to discover a possible monetization model, mainly due to financial difficulties.
8. Tazzo
Tazzo was a motorcycle condo startup that aimed to offer low-priced and handy transportation answers for city commuters. It operated in several most important towns in India.
Reasons for Failure
Regulatory Hurdles- The startup confronted huge regulatory challenges, together with troubles with nearby government and compliance necessities.
Operational Challenges- Managing a fleet of motorcycles and ensuring their renovation and availability proved to be more challenging than anticipated.
9. Taskbob
Taskbob was a domestic services startup that supplied quite a number offerings, from cleaning and upkeep to splendor and health. It aimed to offer dependable and expert domestic services at the click of a button.
Reasons for Failure
High Operational Costs- The value of acquiring and preserving skilled carrier professionals was high.
Scalability Issues- Taskbob struggled to scale its operations beyond a few cities due to logistical demanding situations.
10. CardBack
CardBack turned into a fintech startup that provided personalized hints for credit card utilization primarily based on consumer spending patterns. It aimed to assist users maximize their card blessings.
Reasons for Failure
Niche Market- The startup targeted a niche market, which restricted its person base.
Revenue Model Issues- CardBack struggled to find a sustainable revenue model, leading to economic instability.
Final Words
The testimonies of those failed Indian startups highlight the complexities and challenges of launching and maintaining a startup corporation. Common issues encompass investment problems, operational inefficiencies, regulatory hurdles, and intense competition. For aspiring entrepreneurs, understanding these failures can provide valuable classes and insights into what it takes to be successful.
The Startup India scheme and various investment opportunities provide a conducive environment for innovation. However, a thorough analysis of these unsuccessful startups in India can help avoid common pitfalls and pave the way for future achievement. Whether you are navigating the startup India registration process, searching for start-up funding, or exploring startup ideas in India, studying from these top failed Indian startups can guide your task in the direction of an extra resilient and successful route.