Top 15 loss making startups in India. Reasons for failure?
Loads of money is getting spent on customer acquisition & marketing to acquire customer base . Offering of huge discounts and Cashbacks to newbies & oldies with profit in later years .
India has third largest ecosystem with so many unicorns and soonicorns.
But the startup’s are losing money to a great extent , Do you know the reason ?
Let us first tell you the data as to which startup is failing from top to bottom in losing list –
1 – BharatPe – INR 5594 cr
2- PharmEasy – INR 3992 cr
3- Swiggy – INR 3629 cr
4 – Meesho- INR 3248 cr
5 – Udaan- INR 3076 cr
6 – Sharechat – INR 2988 cr
7 – Unacademy – INR 2848 cr
8 – Dailyhunt – INR 2563 cr
9 – Paytm – INR 2325 cr
10- PhonePe – INR 2014 cr
11 – Oyo rooms – INR 1940 cr
12 – Cars24 – INR 1834 cr
13 – Cred – INR 1280 cr
14 – Zomato – INR 1209 cr
These are just few who filed their FY22 earnings with MCA, there are many others like BYJU’s , OctaFX , Razorpay etc. which are still lacking in data.
The main 3 reasons for the failure are
– Growth over possibilities
Loads of money is getting spent on customer acquisition & marketing to acquire customer base . Offering of huge discounts and Cashbacks to newbies & oldies with profit in later years .
– Lack of monetisation model
– Regulatory & compliance hurdles .
What are your views ? Please let us know in comment section below .