// STARTUP COMPARISON
Coolwinks vs Debenhams
Coolwinks failed in 2020 due to Competition. Debenhams failed in 2021 due to Competition. Both failed for the same reason — Competition.
| METRIC | 🔥 Coolwinks | 🔥 Debenhams |
|---|---|---|
| Sector | Ecommerce | Ecommerce |
| Country | India | UK |
| Founded | 2016 | 1778 |
| Died | 2020 | 2021 |
| Raised | $15M | Public company |
| Peak | $15M raised | £2.9B revenue · 166 stores |
| Primary Cause | Competition | Competition |
// WHY EACH FAILED
🔥 Coolwinks
Competition
Coolwinks built an online eyewear retail platform in India competing with Lenskart. Despite raising $15M and growing to 500,000 customers, Lenskart's aggressive offline expansion (physical stores), higher marketing spend, and superior supply chain made the category winner-take-most. Coolwinks could not match Lenskart's omnichannel reach or its home-trial program. The company shut down in 2020.
// LESSON
In high-trust purchase categories (eyewear, healthcare, home furnishings), pure-play online models lose to omnichannel when the offline player has comparable digital capabilities. Physical presence builds trust that digital cannot replicate for considered purchases.
In high-trust purchase categories (eyewear, healthcare, home furnishings), pure-play online models lose to omnichannel when the offline player has comparable digital capabilities. Physical presence builds trust that digital cannot replicate for considered purchases.
🔥 Debenhams
Competition
Debenhams entered administration in April 2019, was rescued, entered administration again in December 2020, and closed all 166 stores in May 2021. A combination of online retail competition, £600M in private equity debt loading, and COVID-19 lockdowns destroyed the business over a decade.
// LESSON
Private equity debt loading on a structurally declining business accelerates the inevitable. Debt amplifies both upside and downside. On the way down, it is a death sentence.
Private equity debt loading on a structurally declining business accelerates the inevitable. Debt amplifies both upside and downside. On the way down, it is a death sentence.
// EXPLORE FURTHER