Startups have been proliferating everywhere these days. A common instance that is being noticed in this startup ecosystem is how a new business gets developed, scales up for sometime and then, it’s shut down. India is considered to be the third largest tech startup hub in the world. Even, the Government of India pushes a lot for entrepreneurship and start-ups. Surprisingly, most of the start-ups close down due to massive failure. Here are a few Indian start-ups that failed in 2016.
1. PepperTapIt was the third largest e-grocer in India after Grofers and Big Basket. It shut down in April. The primary causes for its failure were imbecile spending for acquisition of customers and a marketing budget with no control.
2. FashionaraIt was considered as propitious as Zovi and Freecultr. It was shut down in May. Stiff competition and wavering marketplace of online fashion were the causes behind it shutting down. It even faced a lack of funding.
3. TinyOwlThis food ordering app shut down across 11 cities at once, in May. Huge losses and decreasing revenue were the reasons behind its failure. The features which were not tested were added and too much discounts were given away leading to its already piled up losses.
4. AskMeIt shut down in August. The primary reasons behind this move were inefficient management of venture finances and a lack of taking up of responsibility.
5. FranklyMeIt closed down in February. A well-funded video micro-blogging website, failed to capture the market attention. Imitating business ideas and poor business strategies are the worst ways followed by any start-up. Also, it’s wrong to compare a company at its nascent stage with already established companies in the US. Nevertheless, failures are inevitable in life. Attempting to take risks and face challenges are habits every entrepreneur must foster and she/he should also shape the losses into stepping stones of success.