The year 2024 was a turning point for the Indian startup ecosystem as it typically offered a mix of excitement and harsh realities. Six startups celebrated unicorn status and simultaneously many faced challenges including shutting down operations. The optimism from a partial recovery in funding was not enough to sustain several ventures which were grappled with financial struggles and unsustainable models.
Startups like Kenko Health, Koo and Toplyne were examples of fragile nature as they were well-funded. India’s much-anticipated rival to Twitter, Koo, couldn’t keep up with high technology costs as well as some failed partnership talks. The platform succumbed to funding challenges similar to several other social media ventures earlier.
The struggles of Toplyne underline another aspect of the startup ecosystem and it was to achievE product-market fit. It was backed by Tiger Global, but still the sales software provider couldn’t meet the goals leading to the returning of capital to investors. The decision reflects the harsh reality that not every idea finds its footing.
Spiritual tech startup My Tirth India fell victim to financial hurdles. Death of principal shareholder Subrata Roy of Sahara India Pariwar led to a funding shortage and the company couldn’t overcome. Upskilling platform Bluelearn closed down after raising $4 million and it pledged to return 70% of the capital to investors.
Established names like Zerodha-backed Stoa School too failed to weather the storm. It offered a six-month MBA program and competed in the growing edtech market. It closed without providing reasons and the silence perhaps speaks to the broader uncertainty as well as pressure faced by startups.
The above closures reveal hard truths of entrepreneurship in India. A great idea and initial funding are often not enough to guarantee success. The stories of such startups are of course a reminder to others that resilience, adaptability and ability to secure sustained financial backing are important for survival in an increasingly competitive ecosystem.
