23 Failed Startups to Learn from in 2023
A business that has been founded around a notion or problem that has the potential to make a significant economic impact is referred to as a “Startup.” Often, the actual development process starts even before that, with the search for a valuable concept or issue to address and the creation of a passionate founding team with a unified objective. The initial founders’ goal is to create a dedicated co-founder team with the necessary skills and competencies to validate the initial problem/solution fit and product/market fit before expanding it into a large firm and self-sustaining business.
National Startup Day
Over the past few years, there have been numerous video conferences with entrepreneurs. As a result, India produced 42 unicorns this year, and there are a lot of new companies developing in Tier II and Tier III locations where people are turning their ideas into viable business plans. This eventually led to giving our country a highly special day, i.e., National Startup Day, which is a day to celebrate startups and encourage people to become entrepreneurs. National Startup Day was established by Prime Minister Narendra Modi on January 16. It is assumed that India will improve its ranking in the Global Innovation Index as a result of the progress in this industry.
23 Failed Startups With Lessons
Following are 23 top failed startups from which we all must learn a lot of lessons in 2023:
1. Pepper Tap
Pepper Tap is an online store where customers can buy food at a discount and was founded by Milind Sharma and Navneet Singh. Furthermore, the firm guarantees that the order will be at the customer’s home within two hours. Over the course of four rounds, the business raised a whopping $51.2 million. They only invested so much because they believed in PepperTap so strongly. PepperTap regrettably announced in April 2016 that the business would be closing.
Doodhwala is a subscription-based service that was established in 2015 and provides customers with doorstep delivery of milk, fresh dairy products, groceries, and other everyday necessities.
As of October 1, 2019, Apptopia reports that startup monthly downloads were at 34,146, a decrease of 34.28% month over month (MoM).
They have minimal profit margins and use discounts and rebates frequently. had a competitive edge or differentiator in the face of fierce competition from Big Basket and Grofers.
3. Local Banya
Amit Naik, Karan Mehrotra, and Rashi Choudhary founded Mumbai’s first online convenience store, Local Banya. The portal offers a large range of products in several categories, such as fruits and vegetables, exotic vegetables, groceries, personal care, home goods, detergents, kitchenware, breakfast, and snacks, among others. When the company reached a $5 million fund, it began to offer fantastic discounts and low pricing in an effort to draw customers. Its one of the Failed Startups which has raised $5 million funds.
4. Tiny Owl
The owners of restaurants, employees, suppliers, and customers are just a few of the stakeholders in the food ecosystem that this food-tech business hopes to benefit. Customers could order meals from neighbouring eateries and view each dish with the chef’s profile through the Tiny Owl app. Tiny Owl went on a hiring rampage as the company noticed an increase in the number of orders per day and employed staff quickly in order to hit high growth milestones like reaching 50 cities in 1.5 years. However, the company didn’t expand in line with that. They reduced their workforce from around 1,100 to around 200.
5. Loan Meet
Loan Meet funding capital requirements, cash credit lines, and channel financing in the region of Rs 5,000 to Rs 5 lakh for short-term periods ranging from 15 days to 9 months, backed by the CEO of lending startup KrazyBee, Madhusudan E. After failing to secure funding since its seed round in 2017, the lending startup with headquarters in Bengaluru closed its doors.
With a global customer base, Zebpay offers a seamless mobile trading experience for a variety of cryptocurrencies, including Bitcoin, Ripple, Ethereum, and many more.In its bimonthly policy, the RBI stated that it would issue a directive to its regulated firms ordering them to stop doing business with organisations that deal in virtual currencies.
Koinex is one of the top failed startups. Thanks to Koinex, multiple cryptocurrencies can be traded in real time on a single platform. It is based on a peer-to-peer exchange concept where sellers can establish “asks” for the cryptocurrency they want to trade in and purchasers can place bids.
8. Card Back
Nidhi Gurnani and Nikhil Wason created CardBack to let owners of credit, debit, and prepaid cards view all offers and rewards without disclosing any private information. Over the course of its five-year existence, the company had raised $170K. Cardback, among others, is supported by well-known angel investors like Rajan Anandan, Sunil Kalra, and Alok Mittal.
9. Doc Talk
Customers were able to save money on prescription drugs, acquire detailed prescriptions, maintain medical records, and communicate with doctors via DocTalk. The business offered specialised prescription templates that assisted doctors in writing digital prescriptions. Due to the digital patient problems being resolved, doctors’ time was saved, and operations were made simpler.
10. Baby Berry
With features like a digital vaccine, health records and diet management, and doctor finding, Baby Berry offered services related to children’s health and wellness. It went above and beyond by providing individualised content from professionals including paediatricians, nutritionists, and psychologists.
At customers’ doorsteps, the company offered utility and consumer services. They offered emergency electrical, plumbing, carpentry, electronic device repair, and pest control services. Later in 2015, they limited their offerings to on-demand laundry and stopped offering other services like express service, dry cleaning, wash and fold, wash and iron, and steam ironing.
12. Task Bob
Task Bob provided consumers with quick, high-quality services for their homes while increasing labourers’ output. They were attempting to address the three most problematic aspects of any home utility service: timeliness, work quality, and price transparency.
Three investment rounds totaling $5.8 million were conducted by the business with its headquarters in Mumbai in April 2015, February 2016, and May 2016, respectively.
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Jayesh Bagde created GetNow in 2014. Users may search for, discover, and order goods including electronics, mobile phones, computers, household goods, and office supplies via the startup’s network of reliable local merchants. The business was solely operational in Nagpur and had agreements with 400 stores. Its Android application and website offered more than 45,000 products across several categories.
At the touch of a button, Flashdoor delivers laundry services to the doorstep. On a single platform, it links delivery personnel, service providers, and clients.
Jabong was an online store where customers could buy affordable goods from partners, including clothing and shoes. Previously, in 2016, Flipkart purchased Jabong from Global Fashion Group for $70 million in a fire sale.
In 2014, Arpita Ganesh established the Bengaluru-based online lingerie business called Buttercups. Through its online platform, it provided its clients with a unique lingerie shopping experience. Anand Chandrasekaran, Kanwaljit Singh, and Rajan Anandan of Fireside Ventures, as well as other well-known angel investors in India, supported the startup. Prior to being shut down, the online lingerie firm also succeeded in raising $1 million in finance.
According to their interests, locations, and social networks, Wooply assisted users in identifying and following fashion, cuisine, and décor trends. Sellers can create online shops on WooCommerce and use social media to sell products from the WooCommerce catalogue.
At a tenth of the retail cost, Klozee provided pre-owned branded and designer clothing as well as clothing rentals. Within six months of receiving its initial round of funding, the rental start-up closed its doors.
19. Just buy Live
Customers’ shopping experiences were improved by Just Buy Live’s access to a huge variety of brands and its straightforward technology. The business received $20 million from Alpha Capital in a Series A fundraising round in January 2016. Afterward, Ali Cloud Investment raised $100 million in a Series B fundraising round.
Shopo is a marketplace where customers may purchase handmade and contemporary Indian designs. Thyagarajan created the company as a zero-commission marketplace where small vendors and buyers from all around India could freely communicate, exchange goods, and conduct business.
The firm makes it easier to purchase appliances and electrical goods by offering small-ticket loans. Students and young professionals can buy phones, laptops, and other consumer electronics online with the aid of Finomena, which offers simple instalment plans or financing choices to borrowers.
Fashionara is an online store that offers a variety of high-end products in the fashion and lifestyle categories. It was founded by Darpan Munjal, a former employee of Reliance Trends and Times Internet. The business expanded in 2014 and 2015, but its gasoline ran out in 2016.
In the market for mobile accessories, Shotang provided a B2B marketplace that connected distributors and consumer brand names. The ability for retailers, distributors, and manufacturers to obtain real-time information and make astute business forecasts was made possible by internet business transactions and inventory management.
If the startup’s proposed solution falls short of resolving the issue facing the market, it is unlikely to generate strong demand; low demand equals poor sales. Startups frequently believe that because their concept is so compelling, there will be tremendous demand for it once it is introduced to the market. India has always been a nation of inventors and innovators; hence, the establishment of National Startup Day aims to ensure that Indian entrepreneurs will restore India’s former grandeur in terms of fresh ideas. As National Startup Day promotes the entrepreneurial spirit, it will give current and aspiring business owners more confidence.