While we see many startups find success, many die off for one of the other reasons. Here are the top 3 prominent Indian startups that died in 2017 and the reasons for their failure.
Finomena was a New Delhi-based financial technology startup that was allowing students and young professionals to purchase electronic products and appliances while providing them small ticket loans.
The reasons that led to the collapse of Finomena were the high cash burn, lack of more series funding, and the most challenging competition from Zest Money, Cash Care, and many others.
2. Turant Delivery
Turant Delivery was a hyperlocal logistics startup providing intra-city logistics services. Turant Delivery was founded on Dec 19, 2014, by Ankur Majumder and Satish Gupta.
Turant Delivery had received around $ 140000 funding from undisclosed investors in its initial phase. However, the funding wasn’t sufficient to enable the startup to survive in the market.
Turant Delivery felt a shortage of working capital, but unfortunately, the company couldn’t raise more funds and was eventually forced to shut down its services in May 2017.
3. Card Back
Nidhi Gurnani and Nikhil Wason in Feb 2013 launched Cardback, a payment platform that enabled credit, debit, and prepaid cardholders to maximize their savings while recommending the best card for payment.
The fin-tech startup became so attractive that even prominent angel investors like Rajan Anandan, Sunil Kalra, and Alok Mittal couldn’t stop themselves from funding it.
While citing the reason in a brief interview, Nikhil Wason said they had the perception that the number of credit card users would be sore when they started. However, that didn’t happen. They had to shut down because there was less demand for multiple credit cards.