Despite the various amenities and concessions provided to boost the startup culture in India, many of them fail to sustain themselves in this race. A few startups, due to various reasons had to bite the bait and shut down in 2016.
Listed below are a few such startups:
The popularity of TinyOwl was slowly growing since its inception in 2014. However, this startup was facing the brunt of financial issues which caused a lay-off of over 600 employees in 2015 and finally its death in January, 2016.
The third largest e-commerce grocery delivery platform, PepperTap, was going good but had to shut down in April this year as it faced immense competition from its rivals who had raised more money in the funding rounds.
Related Post: Over 200 startups closed down in 2016
Amber Wellness, founded in 2015 offered beauty services online. However, due to minimal traction and low margins gained from very few customers who availed the app, the company had to shut down in May, 2016.
Bengaluru based startup, Fashionara had formerly raised money from investors like Helion and Lightspeed. However, in 2016, due to many unsuccessful attempts to raise and recover the money spent, the portal had to close its operations in May.
Another food tech startup which looked to provide home-cooked food to people also had to meet a sad fate despite their unique business model. The concept was a hit with the masses but soon the craze for home-cooked food died down which is why profits margins were almost negative for this company.
Related Post: 9 big Indian startups that shut shop in 2016
Another Delhi based startup had to face problems because of insufficient funding. Tooler offered laundry services online and also let the customers avail free pick-up and drop services. However, this company was closed in January, 2016.
This startup had managed to raise good funding from their investors but because it was a platform for micro-blogging, a concept which couldn’t become popular in the Indian market, they had to shut down.
The Delhi based delivery app provided on-delivery food and coupons and had scaled almost 15 cities. However, because the founders were unable to raise money in a fresh round of investment, Delivered King had to shut down in 2016.
Related Post: 20 Indian startups that died young in 2016