2015 led to big funding and splurging on already existing ideas, but 2016 didn’t end so well for the country “start-up industry” with 212 startup fails and on the verge of extinction by the year 2017 start. The number multiplied this year as compared to the previous year. In the year 2015, only 140 startups failed as said by Tracxn (data analytics firm).
In this casualty list, Peppertap, the grocery delivery startup has prominent appearance. The company was expected to give a tough competition to BigBasket, (a giant in similar business). PepperTap tops the list after raising heavy fund from the investors. The company has extracted the fund of more than $51 million from a pool of giant investors which includes Sequoia Capital, Snapdeal and Saif Partners. In last April, the company founder Navneet Mishra made announcement of closing their grocery business.
After the year 2014, out of 10 startups, 7 are closed for extracting giant funds. The list also had courier booking platform “Parcelled”. The company is going to shut the business in coming June of 2016. DoorMint is also closing very soon due to scarcity of funds which is on-demand laundry service system.
Mohan Kuma, ED, Norwest Venture Partners, India said, “This is a natural progression. When you look at the ecosystem, not more than 20% of the startups succeed. Two to three years after a startup’s inception is a time when you see high mortality. There is too much competition, and only a few survive”.
The list also includes the names like Buildzar which was a marketplace for construction products. From this November, the company has ceased the services after extracting $4 million dollar from MD of Dalmia Bharat, Puneet Dalmia.
On this, Ajay Hattangdi, CEO of InnoVen Capital said, “Entrepreneurs will try rebooting, bootstrapping and running the company with minimum expenses; but if there is strong case for it to shut down, then it doesn’t deserve life support”.
