Startup Failures in India

India's largest-ever IPO became its most spectacular first-day crash then lost its banking license

A $200M acquisition fell apart over 8% bad loans — then nothing was left.

India's farm data pioneer ran out of runway trying to sell SaaS to smallholder farmers globally.

An Earthshot Prize winner that couldn't escape the fatal tension between impact and profit.

Rural India's last-mile hero ran out of road when impact capital retreated.

Selling to 7 million farmers sounds massive until you realize each one costs more to serve than they spend.

The Indian B2B agritech unicorn backed by Tiger Global and Walmart reached $1.6B then couldn't fix fresh produce margins

India's BNPL pioneer — Walmart tried to acquire it, then walked away, then it shut

India's fastest unicorn. Built a D2C empire in six months. Spent the next three years undoing it.

The construction site SaaS that couldn't make Indian contractors pay for what WhatsApp gives for free.

The Tier 2 kirana distributor that fought Udaan and Jio and ran out of money paying its own staff.

India's remote HR suite that couldn't stand out in a crowded market.

India's packaging procurement unicorn hopeful destroyed by MSME bad debt and funding winter.

India's electric scooter giant — disrupted by its own quality crisis before competition could.

India largest crypto exchange lost 235M dollars in a North Korean hack in August 2024 and suspended withdrawals for all 15M users.

The Indian edtech that became the world's most valuable education company — and collapsed under $1.2B in unpaid debts

Google and Reliance's quick commerce bet that couldn't crack delivery unit economics in nine years

The Indian digital insurance unicorn reached $1.1B on embedded policies and found the economics impossible

India's midnight grocery genius was swallowed by the Reliance machine and disappeared.

India's social fashion pioneer ran out of style before it ran out of road.

India's $5.6B online pharmacy collapsed to a $216M valuation — a 96% wipeout — without filing for bankruptcy

Blackstone-backed upskilling giant gutted when India's tech hiring market collapsed.

India's AI-first bank met regulatory reality and quietly disappeared.

Indian logistics unicorn discovered that US enterprise sales kill SaaS startups as surely as bad products.

100 million users who never bought anything — India's TikTok clone with no business model.

Tutoring the Tier 2 dream that evaporated when classrooms reopened.

India's homegrown Twitter rival — backed by Tiger Global and Accel, boosted by a government Twitter dispute — shut when a merger talks failed and the funds ran out

Indian pharma B2B marketplace undone by warehouse fraud and margin wars with distributors.

India's POS hardware giant that UPI rendered obsolete while investors watched $76M evaporate.

The chat-first hiring app that ran out of startups willing to hire.

Wedding e-commerce startup discovered that Indian brides still prefer to try before buying.

Alibaba and SoftBank poured $440M into Paytm's ecommerce arm to fight Amazon India. Five years later, Paytm quietly shut the consumer shopping app.

The warehousing SaaS startup crushed when logistics giants bundled fulfillment as a loss leader.

A government API change took 6 weeks to break what took 3 years to build.

The RBI-backed invoice discounting platform killed by adoption inertia in a winner-take-most market.

India's PDP Bill withdrawal killed a data lineage startup that bet its survival on regulatory timing.

The rural kirana digitizer that outlasted a decade but couldn't outlast the giants.

SoftBank's favourite Indian unicorn raised $3.2B to aggregate budget hotels globally—then fired 50% of its workforce and wrote down its valuation from $9B to under $3B.

India's salary-advance pioneer drowned in NPAs and regulatory compliance costs.

India's fintech training pioneer collapsed when placement guarantees met a hiring freeze.

The Indian neobank for blue-collar workers raised $100M but couldn't survive the PhonePe and Paytm onslaught

Flood warnings that arrived too late—14 months too late.

The smart vending startup whose entire addressable market disappeared in a single pandemic weekend.

Faked ARR to raise Series A — KPMG found out during Series B.

India's premium digital storytelling bet that pivoted into irrelevance.

India's Zapier got acqui-hired by Notion and promptly switched off.

Outgunned by Shiprocket and drowning in COD returns, Pickrr had no way out.

The merchant credit fintech that COVID turned from growth story to NPA nightmare.

India's Shark Tank star raised $650M at $2.85B. CEO Ashneer Grover's phone call threatening a Kotak banker went viral. The company sued him for ₹88 crore in fraud.

India's B2B school infrastructure platform raised $154M from WestBridge—then shed 800 employees in a single round as post-COVID school enrolment normalised.

India's $3.4B edtech unicorn that hired 7,000 tutors and then fired most of them

The Indian K-12 tutoring startup that raised $30M, grew to 1,200 employees during COVID — and shut operations overnight in March 2022

One hundred fifty thousand vendors listed, but most refused to pay the platform that listed them.

India's social commerce unicorn. Raised $1.1B. Shut down grocery vertical. 200 layoffs.

India's B2B FMCG marketplace that couldn't survive the Udaan avalanche.

BYJU's paid $300M for the children's coding startup then discovered the growth was a fiction of aggressive sales tactics

India's generic medicine delivery dream died without a Series B and regulatory clarity.

Indian live-tutoring unicorn raised $400M on COVID learning momentum—then shed 40% of its workforce in a single week as the school reopening erased its market.

India's home services unicorn. Workers protested. Gig economy reckoning.

Legacy SAP integrations at Coal India took 18 extra months — and killed the startup.

RBI's digital lending crackdown turned a compliant fintech into an instant outlaw.

The housing society payment SaaS swallowed by better-funded super-apps.

India's plant-milk pioneer discovered that price-sensitive consumers won't pay a 5x premium for sustainability.

AI diagnostics for hospitals that couldn't afford diagnostics, or AI.

India's $300M furniture unicorn-hopeful sold to Reliance for pennies after $100M in venture funding

The B2B steel marketplace that couldn't bend the old-boy trader network to go digital.

Supply chain AI for India's informal retail network that drowned in dirty data.

Indian checkout SaaS. Amazon acquired it. Project shelved.

5 million users, zero revenue model, and one pandemic away from oblivion.

India's fashion pioneer sold for 88% less than its peak valuation and was quietly buried by its acquirer four years later.

India's office commuter bus. COVID emptied every bus. Never recovered.

The world's third-largest hotel chain. 12,000 layoffs. COVID finished the expansion.

India's Y Combinator-backed car rental pioneer evaporated when COVID erased all travel demand overnight.

Indian smart parking startup couldn't survive free municipal competition and hardware costs.

Indian AR/VR headset startup acquired by Flipkart in 2017 for a reported $4M—then quietly dissolved in 2020 as neither consumer nor enterprise AR found a market in India.

Indian online eyewear startup. Lenskart won. Coolwinks couldn't.

90-minute medicine promises evaporated against India's regulatory vacuum and inventory reality.

India's premium delivery app learned that luxury logistics don't scale in price-sensitive markets.

Mahindra's own B2B logistics bet that couldn't compete even with a corporate giant's backing.

India's third e-commerce unicorn quietly sold to Qoo10 for $70M after achieving a $1.1B valuation

India's home services gig platform crushed between giants and brutal unit economics.

India's homestay OTA. Founder arrested mid-shutdown. Unprecedented Indian startup crisis.

SoftBank's $6.5B Indian e-commerce bet collapsed when it refused a Flipkart acquisition offer and was left to slowly die as Amazon and Flipkart divided the market.

Indian Q&A social platform connecting users with celebrities through short-form video responses.

Right idea, wrong war chest — outspent into extinction by better-funded rivals.

An Indian Q&A social platform that connected users with public figures who could respond with short-form video content.

Smart internet-connected switches that learn from user behavior to automate home appliances.

Lumos built smart internet-connected switches that learn from user behavior to automate home appliances.

An ERP platform providing school management solutions to help Indian schools improve child development and reduce administrative costs.

ERP platform providing management solutions to help Indian schools improve child development and reduce administrative costs.

India's enterprise AI startup outchanneled by the IT giants that built the banks it was trying to serve

India's fintech that RBI's PPI circular converted from a lending product to an illegal product overnight

Indian gym-access subscription decimated by COVID and never fully recovered

A Vernacular Q and A social network acquired by ShareChat that was quietly wound down after the integration failed.

Simple Energy built an electric scooter with a claimed 236-kilometre range to challenge Ola Electric — and shut down in 2023 after raising 24 million dollars and finding it could not match the manufacturing scale or distribution reach of better-funded rivals.

India healthcare AI competing against Apollo's internal AI team, PharmEasy ($1.5B), Practo ($230M), and 100+ Indian healthcare AI startups for 50 corporate hospital chains

India budget hostel chain raised $5M and was destroyed by OYO legal dispute and COVID simultaneously

Mumbai meal delivery startup raised $8M to bring restaurant-quality home meals to Indian consumers and ran out of money four years later.

Indian chronic disease management app overwhelmed by PharmEasy and Practo expansion

Indian B2B commerce unicorn that raised 350 million dollars at a 3 billion dollar valuation to connect manufacturers to retailers and entered zombie mode after deep cuts.

India communication skills edtech that raised $15M and shed hundreds of employees in 2022 as the post-COVID edtech sector collapse devastated children's online learning.

India live tutoring for grades 1-6 backed by Info Edge that shut down in 2022 when the post-COVID edtech market collapsed under it.

Indian hyperlocal grocery startup raised $51M in 2015, dominated headlines, and shut down in March 2016 after discovering grocery delivery math was irreparably broken.

Indian online travel pioneer that IPO-ed on Nasdaq, survived two decades of competition, and was finally destroyed when it was sold to Ebix as Ebix filed for bankruptcy.

DealShare raised $165M to bring social commerce to tier-2 India — then the unit economics proved that WhatsApp group-buying does not scale profitably

Used car buying and selling platform backed by Prosus and OLX that attempted to build a Carvana-style business in the Indian used car market

India's precision agriculture AI beaten by government FPO programs with the same capabilities for free

NestAway raised 100 million dollars from Tiger Global and Goldman Sachs to manage furnished rentals for India young urban workforce — and sold to Housing.com for approximately 12 million dollars in 2022 after COVID destroyed its rent collection model.

mfine built an AI-powered telemedicine platform for Indian hospitals and patients, raised 48 million dollars — and quietly shut down in 2022 as the telemedicine boom that COVID created vanished almost overnight.

India's online furniture startup acquired by a rival for a fraction of invested capital

Indian social fashion discovery platform crushed between Myntra and Meesho

Indian neo-bank for salaried workers that raised $190M and was squeezed by HDFC, Axis Bank digital and Fi.

An instant live tutoring app that could not survive the Indian edtech crash of 2022.

Bangalore's AI breast cancer detection startup couldn't achieve clinical adoption velocity in India's fragmented hospital market

Indian travel search that IPOd at $950M and faces delisting after 17 years of competing with MakeMyTrip.

India first self-drive car sharing app raised $105M, listed on NASDAQ, then collapsed as car owners stopped getting paid and the platform became functionally unusable.

India's edtech AI that the category bubble inflated and then deflated around it

Pakistani digital wallet neobank had 500,000 users and was shut down by State Bank of Pakistan

India's payments startup competing against PhonePe and Google in a UPI market where the rails are free

Indian AI recruiting tool made redundant by ChatGPT and LinkedIn's own AI features

Indian quick-commerce pioneer that rebranded to Blinkit — but Zomato acquired it at distress.

The Indian street food chain that raised private equity to become the Indian McDonalds and instead became a cautionary tale

Indian wealth management app outgunned by Groww and Zerodha billions

The Indian B2B distribution unicorn that raised 330 million dollars and then cut a third of its workforce

Indian dockless scooter sharing startup that raised 105 million dollars and had to shut down its shared mobility business entirely to pivot to selling electric vehicles.

India's first crypto unicorn gutted by government TDS ruling

The Indian food delivery startup where laid-off employees held founders hostage in the Pune office

An Indian creative skills edtech for kids that launched at the COVID peak and was among the first casualties of the 2022 edtech crash.

Bangalore's corporate wellness SaaS was squeezed between MFine and HealthifyMe's market dominance

Indian vernacular social media unicorn that reached $5 billion valuation before TikTok ban benefited it briefly and Meta copied every feature.

India used two-wheeler marketplace that raised $22M from Omidyar Network and Accel before OLX Autos and CarDekho's two-wheeler vertical made the standalone model unviable.

Malaysian-backed Indian classifieds giant raised $300M, left 4,000 employees unpaid in August 2016, and became a cautionary tale about foreign capital misallocated into Indian ecommerce.

Pakistani mass transit startup raised $85M to bring air-conditioned bus service to Lahore and ran out of capital when the 2022 funding market closed.

Indian credit card startup lost its banking partner and folded overnight

Furlenco raised $75M to make furniture rental mainstream in India — then learned that furniture that is rented, returned, and re-rented has damage economics that destroy every margin assumption

Indian DeFi lending protocol shut down as Aave and Compound made it irrelevant

Zero-forex travel card pioneer crushed by RBI rule changes

Indian bookkeeping app for kirana stores raised $85M and saw 90% staff cut as WhatsApp entered

Indian AI robot companion for children stalled as device costs and Chinese competition killed margins

India celebrity-taught skills platform backed by Lightspeed that raised $19M and shut down within 24 months as the edtech funding winter hit.

Indian dot-com classifieds portal that raised millions to digitize Yellow Pages in 1998 internet India.

India BNPL neobank backed by Tiger Global at $1.5B that merged with North East Small Finance Bank in 2023 after RBI rules eliminated its standalone fintech model.

GoMechanic raised $62M to digitize car repair in India — then the co-founder publicly admitted inflating revenues by 2.5x and Sequoia wrote off the entire investment

Trell raised $45M to become India TikTok for lifestyle content — then laid off 300 people in a fraud scandal and never recovered

Ecom Express IPO-ed on the NSE in February 2024 — and announced it was shutting down entirely just two months later, leaving 4,600 employees without jobs as Meesho, Amazon, and Delhivery destroyed its last-mile economics.

The Indian agri-food supply chain startup that raised 130 million dollars and cut 70 percent of its workforce

The relay trucking unicorn that reinvented Indian freight and then sold its core to Flipkart

CityMall raised 75 million dollars to bring group-buying commerce to Tier 2 and Tier 3 Indian cities — and shut down in April 2023 after discovering that social commerce referral loops in India do not generate enough basket size to cover logistics.

India neobank for salaried professionals backed by QED Investors that raised $86M before being absorbed as RBI regulatory pressure and HDFC/ICICI digital banking made standalone neobanks redundant.

Indian SME store builder replaced support staff with AI and watched churn spike

The Ola-backed dockless scooter app raised $100M and shut down when COVID exposed the fatal flaw in its unit economics.

India fintech second wave: UPI (10B+ monthly transactions), PhonePe (500M+), Paytm (350M+), Google Pay (350M+) combined 1.2B+ UPI registrations before Hyderabad startup could scale

Indian agri-commerce platform connecting farmers to buyers that raised $24M but could not monetize the marketplace.