Startup Scene in India
40,000 startups STATS In India, 7,200 startups emerged in 2018. 108% Growth in total funding From $2 billion in 2017 to $4.2 billion in 2018. 120% funding growth for AI startups $150 million investments made in this field in 2018.
The seed stage funding of Indian STATS has declined from $191 million in 2017 to $151 million in 2018. Post 2017, investment into startups has increased by over 100 per cent, from $2.03 billion in 2017 to $4.2 billion in 2018. The Chinese have invested majorly in the ecommerce. $200 million round investment in Paytm Mall from Alibaba and SAIF Partners (2017). The biggest, was the $1.4 billion that Tencent, Microsoft and eBay put into Flipkart (also 2017).
STATS 45% of the freelancers were being hired by startups/SMEs in 2016-17. The trend has changed in 2018-19 by 42% of them working for consulting firms. An increment from 17% to 39% has been noticed in the ones working for large corporate/MNCs. Startups with a woman founder or co- founder between January and September 2018 comprised 5.2% of the $9.14 billion raised in overall funding, but is more when compared to 2% in 2017.
$33.62 BILLION that’s how much investors STATS have poured into the Indian startup ecosystem since 2014. In 2018, Bengaluru tops the charts with 68 deals and around $920 million in funding (In 2017 Bengaluru saw 55 deals worth around $358 million). Delhi-NCR follows with 45 deals and value of around $532 million (with 58 deals and $376 million funding in 2018 during the same quarter).Mumbai was the third. While, Pune and Chennai followed.
FAILED INDIAN STARTUPS IN 2018
eBAY The abeyance of ebay was a part of a business strategy and not a breakdown as stated by the officials. After its possession of Baazee.com for $50million ebay was launched in 2005, though terminated soon in the August of 2018.
eBAY The US-based company failed to set its foot in the market over its competitors like Flipkart, Snapdeal and ShopClues in India. Impotent to outcast its competitors Ebay sold its business to Flipkart for $150 million.
eBAY Epitomizing its business it bought its adversary Flipkart for a cost of $514 million with 5.4% stake and continue in the Indian retail pool. Previously it intend to make a profit of $ 1.1 billion by selling its share in the future.
eBAY But later when Flipkart decided to shut down eBay.in, with plans to launch its own platform to sell refurbished goods. Ebay decided to end its crucial partnership and focus on cross- border trade.
COINSECURE A reason for Coinsecure’s rapid growth was its strong services when compared to the other cryptocurrency exchange companies. The company offered a strong elucidate to provide security to prevent forgery or hacking in the company.
COINSECURE Coinsecure was shutdown after a case of hacking on 9th April,2018. It led to a loss of over BTC 438 worth $3.3 million to the company. Its chief security officer, Amitabh Saxena, was suspected for the international theft . The CEO, Kalra requested to seize his passport.
COINSECURE If the stolen funds are not restored the company is likely to witness bankruptcy..
ZEBPAY Another cryptocurrency exchange and trading startup with zero trading fee Zebpay India set its foot in 2014 in India. It announced the closure of all its activities after 5 months of RBI’s unsympathetic statement in April 2018, which prohibited the trade of cryptocurrency exchange with finance companies and banks.
ZEBPAY Tight regulatory supervision in India is forcing multiple cryptocurrency exchanges like Coinsecure, BTCXIndia, MoneyTrade, Bitconnect to close their ventures in 2018 after appealing again the order of Supreme Court.
ZEBPAY “However, the recent past has been extremely difficult. The curb on bank accounts has crippled our, and our customer's, ability to transact business meaningfully. At this point, we are unable to find a reasonable way to conduct the cryptocurrency exchange business,“ the company said in a blog.
ZEBPAY "You are free to deposit and withdraw coins/tokens into your wallet," it added. The company claimed to have the largest crypto users in India before its closure is now trading internationally in 130 countries excluding India with its headquarters in Singapore.
OFO Ofo, the Beijing based bicycle rental company started in 2014. It expanded its business to India in 2017, but soon terminated after a stretch of 7 months. The Alibaba-backed bike-sharing service received $866 million from Alibaba Group in March 2018, but failed to continue its India operations.
OFO According to a statement by Rajarshi Sahai Director, Public Policy and Communications, Ofo it completed 1 million rides across 7 cities in only 10 weeks. As per their marketing strategy , though India had huge potential in the rental bike segment but compared to their international expansion it was not a profitable market.
OFO "We are shutting down our country operation. It is part of a global strategy to shrink the footprint,“ he added. From internal sources of media it was said that Ofo is witnessing immense cash flow pressure which is leading to its closure in the unprofitable countries.
OFO From internal sources of media it was said that Ofo is witnessing immense cash flow pressure which is leading to its closure in the unprofitable countries.
OFO There have been multiple talks and guessworks about the company being hijacked by capital. An Ofo spokesperson put the predictions to rest by saying that the company’s rapid expansion in the last year gave it a better understanding of its international business. And this is why they started focusing on profitable markets.
MONKEYBOX Like a majority of Indian startups Monkeybox, a consumer service company started in Bengaluru with partnership of Sanjay Rao and Sandeep Kannambadi in 2005. The company turned up with a concept of supplying nutritious vegetarian meal to school students and claimed to have 6k subscribers.
MONKEYBOX Monkeybox successfully acquired cold- pressed juice manufacturer and delivery firm RawKing and 75 In A Box, a corporate-focused healthy food delivery company. It also has raised funding of more than $2 million from investors such as NB Ventures, Nspira and Blume. Its shutdown was abrupt in allusion to its constantly expanding business.
MONKEYBOX The company announced its shutdown and stated that the startup was unable to fulfill its promise to provide healthy meal to the kids due to constraints on their end and will work on new strategies before resuming the service. They terminated their operation on 23 March, 2018.
MONKEYBOX Bharat Balachandran and Sahil Saini’s Mumbai based company Just buy live was launched in 2015. It offered a platform to Small and medium shopkeepers to directly buy from brands. The e-distributor came up with profitable business strategies for their clientele. They offered unsecured credit lending and working capital to let them buy branded products in all categories.
MONKEYBOX The shutdown of the startup was sudden and no official statements were made. Until as per TechCircle Bharat Balachndran was approached, who stated that the company has only temporarily suspended its business and is awaiting fresh funding to resume it.
MONKEYBOX The company raised $20 million and $100 million in Series A and Series B funding from Alpha Capital and Ali Investment Cloud which was claimed to be insufficient! The negative cash flow and distorted business model traced it’s failure.
MrNeeds Another player in the startups which was doing well, but left soon was MrNeeds. The Noida based endeavor started in 2006 by the young entrepreneurs Hitashi Garg, Ravi Wadhwa, Ravi Verma and Yogesh Garg.
MrNeeds It started with milk delivery service and later added bread, eggs, groceries and other daily essentials to the list. It claimed to serve more than 10 k households in Noida and parts of Delhi.
MrNeeds No official statements were made by the owners to disclose the reason for its shutdown. Despite being a tough competitor its failure to prevail over established enterprises like BigBasket and DailyNinja has been speculated as the reason behind its closure.
PORTDESK Another case of a sudden shutdown, the startup started in 2014, from its Noida Headquarters. PortDesk dealt in offering e-portal software.
PORTDESK PortDesk offered merchant vessels a single platform to manage all port- related costs through a proprietary port cost management system. In 2017, the company got a boost when it raised a seed investment. Alphard Maritime Group, a Singapore-based maritime services company, invested $2million in PortDesk.
PORTDESK Startlingly, the company collapsed one year post its big lift-up in the early months of 2018. The founder did not announced any speculation behind the big step. But according to TechCircle, they received a message from the direct communicator that Portdesk had suspended operations.
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