7 Less Known but Big Startups in India that Failed Because Lack of Funds: It is essential for every entrepreneur to understand that starting a business contains risk at any moment because it is a learning process. If you haven’t already figured it out that no strong investment round guarantees continuing funding; you could get into a bad situation or be forced to close your company at any time. Similarly, there are numerous examples of Startups in India where founders’ failed post-mortems are held as a result of a lack of funds. We are presenting a number of popular Startups in India that shut down because of a lack of funds. Let’s look at it more closely.
7 Lesser Known Indian Startups that shut down due to a financial crunch:
- Dazo
- Founded Date: 2014
- Founders: Monica Rastogi & Shashank Sekhar Singhal
- Operating Status: Closed
Founded by Monica Rastogi & Shashank Sekhar Singhal, Dazo was a Bangalore-based food tech company that started out as a meal-on-demand service collaborated with some selected restaurants and handled the food delivery logistics. Dazo delivers fresh meals to customers’ homes from the top restaurants nearby. The Dazo Android app was very user-friendly, taking less than 10 seconds to complete the order with just three clicks. Users also liked its platform as it makes it simple to get great, low-cost meals. Unfortunately, the company was unable to find adequate funding and decided to shut down operations.Â
- Yumist Foodtech Pvt. Ltd.Â
- Founders: Abhimanyu Maheshwari, Alok Jain
- Founded Date: 2014
- Operating Status: Closed
- Closed Date Sep 29, 2017
Yumist is another food technology startup formed in 2014 by a former Zomato official and a restauranteur, in Gurgaon, Haryana, India. The company serves quick and easy home-cooked food at a reasonable price. It accepts orders for delivery via our Android and iOS apps, as well as its website in just 30 minutes, Customers may place orders with Yumist with just a few taps or clicks. The main reason for this startup’s collapse was a lack of finances.
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- Tazzo Technologies
- Founded Date: 2015
- Founders: Priyam Saraswat, Priyank Suthar, Shivangi Srivastava, Vikrant Gossain
- Closed Date Jan 2018
This company was offering a location-based motorcycle delivery and pick-up service that allowed users to track the availability of two-wheelers at the nearest station. Tazzo is a self-drive motorcycle rental firm that provides on-demand delivery. The Hyderabad-based company app included live GPS tracking and cost INR 5 per kilometre. It was shut down in just two years due to a lack of funding in the following rounds due to a lack of profitability.
- Frankly.me
- Founded Date: 2015
- Closed Date Feb 2016
- Founders: Abhishek Gupta and Nikunj Jain
Frankly.me launched in 2015 was primarily a Q&A social media network aimed at Indian audiences, where users could directly interact with public figures to ask them questions. Anyone could also register and share 90-second videos with other users. The reason for the company’s failure in 2016, after less than two years on the market, was that it was unable to raise the required round of funding.
- RoomsTonite
- Founded Date: 2015
- Closed Date Feb 2016
- Founders: Suresh John
Last-minute hotel booking app for customers who have decided to travel in or to India was run by Bengaluru-based RoomsTonite bookings. RoomsTonite was an app-only last-minute hotel booking service that assists clients in finding nice hotel rooms at reasonable prices. The company had reported that it had raised $1.5 million in finance, but due to late payments or things not going as planned, the business struggled to stay alive and shut down in March 2017.
- Autto.in
- Founded Date: 2017
- Closed Date: 2017
- Founders: Deepak Murthy
Autto.in was an on-demand doorstep vehicle service business based in Hyderabad, India, founded by Deepak Murthy in 2017. The company provided general car maintenance by dispatching mechanics to car owners’ homes. The firm began marketing soon after its launch, spending a significant amount of money on customer acquisition. As a result, their funds depleted, and they sought out investors who pressed them to expand quickly. They chose to shut shop after a few months.
- Holachef Hospitality Private Limited
- Founded Date: 2014
- Founders: Anil Gelra, Gaurav Srivastava, Saurabh Saxena
- Closed Date Oct 18, 2016
Holachef is a Mumbai-based Food and Beverage, food processing, and Delivery Service Company that provided customers with chef-prepared fresh meals. Saurabh Saxena created Holachef in 2014. Kalaari Capital, India Quotient, SIDBI Venture Capital Limited, and Ratan Tata, chairman emeritus of Tata Sons, are among the investors. Investors lost interest after the arrival of Swiggy, Zomato, and FoodPanda, leading to a cash shortage.
