The Graveyard Of Startups – 5 Indian Startups That Failed In 2018
90% of startups fail in the first three years, as per research done by analysts.
India is home to a surplus of start-ups. While some startups, like Swiggy, go on to reach new heights, some start-ups have to die a slow death, albeit unwanted. As per the numbers, 90% of Indian startups fail within the first five years.
There are a million reasons behind the sudden shut down of up and running start-ups: inconvenient business models, strong competition, a poor imitation of western ideas and even government bans!
On the last day of 2018, let’s find out why these startups had to go under:
The largest bitcoin exchange shut down on Sep 28, 2018, with a small tweet announcing their decision. Founded by Mahin Gupta, Zebpay had to shut down because of RBI’s decision to put a ban on Bitcoins and other cryptocurrencies.
For details, go here.
Ofo is a bike rental company that will shut down within a short span of 7 months only from the date of its launch. The company made news when Alibaba backed it with no less than $866 million. The director of Public Policy and Communications at Ofo, Rajarshi Sahay announced the company’s shutdown in various other countries too, citing the reason behind the shutdown as “a global strategy to shrink the footprint.”
Launched in 2005, eBay was shut down, rather acquired by Walmart-owned Flipkart, in India on August 15, 2018. eBay, which also had the added feature of selling products and goods at an auction, was among the very first portals to introduce online shopping in India, but was soon defeated by Amazon and Flipkart.
Good news for all the eBay fans: The company CEO Devin Wenig has already announced that eBay will restart soon in India with a new business model.
Just Buy Live
Founded by Bharat Balachandran and Sahil Sani, Just Buy Live announced its shutdown just nine months after claiming to raise $100 million. It was a platform that connected retailers directly to brands to buy everyday items like food, drinks, personal care, auto, smartphones, fashion, etc. The reason behind the shutdown was probably the business model which was flawed greatly and negative cash flow.
Founded by Anterpreet Singh, Anish Basu Roy and Vishal BG in 2013, Roy left the company to join HealthifyMe. It was a business-to-business online platform where retailers, distributors, and manufacturers carried out business. The firm, with a net worth of $40 million, probably was met with strong competition from e-commerce giants like Amazon and Flipkart that led to its massive failure and resulting in a shutdown.
Having said that, failure is not the end of a journey. We congratulate the founders and co-founders of these failed startups for trying and attempting to make a dent in the Universe. And we are sure that very soon, they will.