Failed Startup in India

“Learn from your mistakes, Even better, learn from others mistakes ”

Success stories are important but there are always many failures which build towards that success. It is important to talk about these failures. Sharing these stories helps others learn and avoid repeating mistakes. It also makes the environment more real. More than 80% startups die within the first three years of starting but we hardly hear about them. These are some of the startups who fail:

  1. Townrush

Townrush is an urban logistics and on-demand delivery platform that helps in getting local goods delivered in a city within an hour. It connects merchants and customer to local logistic providers in real-time and arrange the complete shipment life-cycle till it reaches its final destination. It also has premium delivery service where goods used to get delivered within 30 minutes at a premium rate. Ex-Flipkart employee Saurya Prakash and Tushar Bisht ex-software engineer at Facebook started Townrush in May this year.

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The Bangalore-based startup that has been ailing with cash crunch has apparently fired the delivery team comprising of 30 people. The startup failed to pay salaries to its employees for three month. Grocery delivery startup Grofers later disclosed it was hiring the Townrush team.

  1. Dazo

The startup began as an internet kitchen with its own chefs and reliable partners serving a few localities in Bangalore. The Google India MD Rajan Anandan, Amazon’s country manager Amit Agarwal, Commonfloor’s Sumit Jain, TaxiForSure’s Aprameya Radhakrishna and SAIF’s Alok Goel were all investors in this food startup.  Its founder, Shashank Kumar Singhal, was the mobile product head for India’s first bus ticketing site RedBus, who had qualified from the prestigious Indian School of Business.

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Soon the pressure to scale up into an aggregator of restaurants as it focused on the tech at the core of food and logistics. This made it dependent however, on many restaurant partners whose food quality and delivery efficiency were beyond its control. The curation of content it promised at the outset began to take a beating. It changed its name from TapCibo (because many new consumers didn’t get “cibo” is Italian for food), but neither the new name Dazo nor the cool tech it had developed could prevent its slide. A number of other food startups like TinyOwl and Zomato have run into problems in 2015, but are trying to ride it out with a longer runway they have in funding.

  1. Done by None

Gurgaon-based web-only women’s fashion brand Done by None was backed by early-stage venture capital firm Seed fund, which invested US$2 million in it. Done by None had three founders – Amarinder Dhaliwal, Vijesh Sharma, and Vijay Misra – with tons of experience in ecommerce, internet businesses, and technology. Dhaliwal and Sharma were earlier with Bennett, Coleman & Co., and Misra was a former director of the TCNS Clothing Company. They launched the company first as Handspick in February 2011, and a year later, rebranded it as DoneByNone.

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 In 2014 October, the startup made a rather desperate announcement of 70 percent off all items. DoneByNone had 353,252 fans on Facebook, and going by the feedback of customers on it, the startup failed to handle the demand or deliver products on time. Many refunds for the returned products were not processed that made customers lose confidence and also there was no proper handling of customers or no customer care. According to Business Insider Done by None co-founder Amarinder Dhaliwal is now the COO of Micromax’s YU, Vijesh Sharma is on a stealth mode with his new startup, and Vijay Misra’s LinkedIn Page simply says that he was with Done by None till August 2014.The exact reason of shutdown isn’t clear but according to BI the company may not find its existing investors interested in it anymore. The company left a last note on their facebook page:

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  1. Talent Pad

Started in February 2014 by the IIT and IIM alumni founded startup from Delhi had a curated marketplace model using analytics to find suitable candidates for its client companies. Nearly 18 months into the business, the founders decided that the market opportunity in the sector they were operating in was not large enough. The company shut down its services with a short note “We helped a lot of people find jobs in some of the best tech companies in India and also played a crucial role in the growth of these companies, all the while focusing on delivering consumer delight”.

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India’s engineering colleges produce over a million engineers each year, but fewer than 20 percent of them are employable. Finding suitable candidates, therefore, is no mean task. Talent Pad even acquired its Bangalore-based rival Optimized Bits in May to boost its analytical capabilities but the market opportunity is not much in it. The new start-ups or business have a more technology-focused approach and are tracking candidates through social media activities of users to keep their data base updated.

  1. LUMOS

The three BTech graduates from Indian Institute of Technology (IIT) Gandhinagar started Lumos right out of college in 2014. The idea was to build smart switches that can automate all electrical appliances in a home. The switches would have inbuilt sensors that allow them to track ambient conditions and human presence to take accurate automation decisions and they would learn from the user’s behavior.

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The startup had underestimated the work, time and funding that goes into making a market-ready hardware product. Another problem was that they had overestimated the demand and utility of their product. The company was also running out of funds then they decided to close it down.

“If you’re not failing every now and again, it’s a sign you’re not doing anything very innovative”

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Krishna Yadav

Krishna Yadav is an Entrepreneur and founder of Infibusiness Solution, since 2015. He mostly engage in programming and writing technical blogs on startup, seo and google tools. Subscribe for your daily dose of tech tips and website design guidance.

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