Startup Shutdowns and the Reasons

startup shutdowns

Startup Shutdowns and startup launches have been increasing quite numerously. With three to four startups being put up each day, India stood third globally while considering the number of startups in the nation. With the number of startups in India approximately hitting 5000, the future has not been always as predicted. Shutdowns are happening and even for a large scale startups it has shown no grace.

Major Startup Shutdowns

Of the classification that is generally made among startups i.e., Food Technology, Logistics, Grocery, Fashion Marketplace, IoT, EduTech, B2B etc., we witness startup shutdowns in almost all these sectors independent of their uniqueness.

Sector Startups Founded in (respectively)
Grocery PepperTap, LocalBanya Nov 2014, May 2012
Food Technology Dazo, Spoonjoy, Eatlo, Langhar, TinyOwl Oct 2014, Apr 2013,

Dec 2015, Aug 2013,

Dec 2013.

Logistics Townrush, RoadRunnr, Zippon Feb 2015, Mar 2015, Jan 2014
Fashion DoneByNone, Fashionara Feb 2011, Apr 2012,

The above table depicts only a few of the shutdowns that happened, with their founding date.

Why startup Shutdowns

There can be more reasons as to why they have been shut down – revenue, customer lack, competitor, lack of personnel etc. For the information, the above mentioned startups were funded well and were backed up by prime personnel in the market. Still the foundation failed.

The reasons can be manifold but the idea is an idea, after all. All it could take is execution in the right time with the calculated risk at the right place and let things unfold; of course, we all know what impromptu results in. On a day, in the same hospital, there can be a birth and a death. But the question would be what the age of the dead person is. No wonder, in a startup world, on a given day, a startup would have been founded and a startup would have been shut down, but the question is how old is the startup that’s being shut down.

A statistic says that, 18 shutdowns have been observed in the first five months of 2016. What’s more surprising of a fact is that 15 among them are funded which reveals the fact that funding wouldn’t lead to success.

For so many Entrepreneurs’, funding has been a go-to word for the reason of the failure. The above statistic rightly depicts the truth. The idea, the flowchart, the plan, the execution, the team, the funding, the investors, customers are the primary look-afters for the success of a startup. But when more profoundly viewed, it has always been the unseen properties like perseverance, attitude, forbearance and hard work of the one that is leading from front, which fetches success for a startup or any organization.

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