In a dynamic entrepreneurial environment, startup shutdowns are a part of the ecosystem. This is an undeniable fact. As per a recent IBM and Oxford study, 90% of the startups in India fail within the first five years of inception. Last year, between January and August 2016, reportedly 29 startup shutdowns in India took place. Hyperlocal startups were the hardest hit. As compared to 2015, reported 15 startup shutdowns that were reported in media.
Startup shutdowns in India for 2017 (January-June) have been no different, with a total of 8 startups closing down their operations and two wind up some part of their business. The Stayzilla shutdown has been the most public of them all, owing to legal controversies for the founders. But sectors that were widely hit are hotel bookings and aggregation, hyperlocal, niche ecommerce and foodtech. And this list of startup shutdowns in India includes only those which were being reported to/in the media. The actual number is much higher.
This also shows a cautious mood in the market, with investors taking a sombre step back before writing big ticket checks. With governmental support, the Indian startup ecosystem has received a much-needed boost, but not all businesses can survive, regardless of how much support – funding, mentoring, services, etc. – they receive.
Keeping all these factors in mind, we at Inc42 have compiled a list of startup shutdowns that were reported between the period January-June 2017.
This information has been generated using publicly available data across media sources as well as our own internal investigation.