Startup Shutdowns In India: 8 Startups That Called It Quits In 2017
Today, there was a news that 8 startups closed their office in 2017. This is not a good news for startup industry and it must have impacted everybody associated with these startups. I wish they will again rise with a new beginning.
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.
If you further analyze these startups and their business model, then you can find that most of these startups are some kind of copy or replica of an existing successful startup or solution. Copying another business idea is permissible as long as there is some kind of innovation added into it and market is yet to get saturation in terms of competitions. But blindly copying an existing business model will be a disastrous. In the travel space, there were some unsuccessful startups like travelgenie, travelchacha, etc. Its not that their product is bad but they simply failed to attract customer. Most of the impacted startups are in hotel bookings and aggregation, hyperlocal, niche ecommerce and foodtech.
In reality, making small changes to things that already exist and successful might lead to a local maximum but it wont help in getting into global success. FlipKart is still a Indian retail giant, with almost no global presence. You could build a best version of iPhone app to order toilet papers but iteration without a bold plan wont take it to 0 to 1. A company is the strangest place for all for an indefinite optimism i.e. why should you expect your business to succeed without a plan to make it happen? Darwinism idea of evolution maybe fine for other context but in startup, intelligent design works best.