Around 212 startups closed down in 2016
According to Data Analytics firm Tracxn, year 2016 shattered the dreams of hundreds of startups. Over 212 startups are not able to see the dawn of 2017. Some of the major startups were – Pepper Tap, AskMe, TinyOwl, FranklyMe, Fashionara, Buildza, Parcelled, and DoorMint and so on. Grocery delivery startup Pepper Tap was one of the startups which were able to raise the highest funding from investors. Even then it was closed down in April, 2016. It is astonishing to see seven out of top 10 startups that were shut down after raising sizeable funds were founded in or after 2014.
Online courier booking platform Parcelled, wound up business in June 2016. Likewise, DoorMint, which shut its on-demand laundry service in September, 2016 due to lack of funds.
AskMe, a Malaysia-based Astro Holdings backed AskMe closed down leading to unemployment of more than 4000 employees. The consumer internet search platform AskMe shut down its operations from August, 2016. The company probably took the decision because of severe cash crunch. It was started as a classified portal in 2010. The company launched its online shopping portal Askmebazaar in 2012, focusing on small and medium enterprises. Later in 2013, AskMe was acquired by Getit. Although its e-commerce website is still live but is not accepting any new orders.
TinyOwl, food ordering app TinyOwl was closed down in May, 2016. Their investors included Sequoia Capital, Nexus Ventures and Matrix Venture Partners.
FranklyMe, it was shut down in February, 2016, it was a video micro-blogging portal aiming to become India’s first video only social network, was shut down in February, 2016.
Fashioner, a fashion startup was shut down in May, 2016. The startup was able to raise $4 million from Helion Venture Partners and Lightspeed Venture Partners, and expanded into sub-niches such as footwear and accessories, but inspite of all this it could not survive.