Top 8 unsuccessful startups in India

Why startups fail in India?

In today's world, most of us want to launch a startup but the problem is we Indians are so passionate and confident about our ideas that we don't think long-term. This is the main reason why startups fail in India?

top 8 unsuccessful startups in India

A startup got victorious when launched with complete knowledge in the domain without ignoring competition that prevails in the market. A startup shutdown is not only limited to incompetent knowledge but there are several factors behind it. So, today we will get an insight from the top 8 unsuccessful startups in India with the reasons behind their fall.

Top 8 unsuccessful startups in India

These are the well-known ventures listed from the previous years and now are recorded as unsuccessful startups in India.


Tapzo was the all in one mobile app that provides various services under one platform. It combines various varieties from different categories such as booking a taxi, ordering food, paying bills, or shopping online. This app was really impactful at attracting the Indian audience as its main feature was to offer various services in one unit.

Although, most of the services were not owned by Tapzo but it works as an intermediate between the service providers and the customers. Also, it was a mobile-friendly app for the customers because it prevents the burden of installing different apps for enjoying various services.

This startup tastes failure because it was not able to cope up with the expenses and was facing a financial burden. Eventually, it was acquired by Amazon for 40 million dollars and now serving as amazon pay which is the payments platform for convenient sending and receiving money.


Doodhwala was an Indian startup that was having its customer base in three major cities of India and was soon expected to launch its service all over the nation. It works as a distribution channel between the milkman and the final consumers and also collaborated with various grocery stores for delivering goods to the customers.

It was working on a subscription model and raising its subscribers at a very fast pace. But was unaware that the Indian market is very competitive and there are many players such as grofers and bigbasket to give it a tough rivalry. So, Doodhwala eventually lost its market share was listed as unsuccessful startups in India and now it is taken over by fresh home.

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Coin secure

The coin secure brings in a new reason why startups fail in India? This company works as a digital wallet service of buying and selling bitcoins in India. It also gets a huge customer attraction in the year 2017-18 as cryptocurrency got very popular at that time.

And people happily invested in bitcoins and opt Coin secure as a safe platform for buying and selling. But in the year 2018, this application lost its users because of an online theft conducted on Coin secure. In this theft a hacker robbed about 438.3 bitcoins that cost around Rs. 20 crores and around 11,000 customers lost their investments.

Now, the Coin secure has stopped its services in India and recorded as the top 8 unsuccessful startups in India.

why startups fail in India?


Shotang was a company that runs as a distribution network for customers, retailers, and manufacturers. It was one spot solution for goods distribution from one place to another with the help of its large network and technology. It started well in Banglore (India) and was successful at expanding its reach in 5 different cities.

However, Shotang being a small network as compared to the other big players such as Flipkart and Amazon that already exist in the Indian market. Shotang got failed at reaching more valuable customers because of high-end competition.


Doctalk started as a messaging app for doctors and patients. In which the patients can ask doctors for their advice, the consultation will be provided to the subscribed patients only. Subscribed means the patents who have bought a consultation from the doctors by paying their fees are open to receive free advice from the doctor 24 by 7.

Doctalk later decided to pivot its app to a more sustaining and long term model but failed to deliver success. Although, it got a great customer reach at the beginning of its launch but at last listed among the top 8 unsuccessful startups in India.


The reason behind the failure of this startup is quite different from others. And Babyberry brings in a new reason behind startup failure. It was a personalized application for parents with a newborn baby. The role of this app was to guide the parents with knowledge that is required for the development of their child.

Babyberry also features various consultation bookings with the nearest doctors and guide with the child's future medication and vaccination required. But, the users using this application were facing some technical glitches and this startup left the business world with a promise to fix the errors and come with an improved version.

Actually leaving its well-established market position is a very poor decision by Babyberry. This is another reason why startups fail in India?


Yumist was the food delivery platform that delivers home-cooked food at your place. With the use of great technology for order booking and top-notch logistics for delivery, they promise to deliver food within 30 minutes.

Yumist started its food supply model in Gurgaon and later decided to expand its reach in 5 major metropolitan cities of India but failed to manage sufficient funds for running their business and due to this, they have to leave the market. With this, we got to know that fundraising is one of the main issues for most of the top 8 unsuccessful startups in India.


Stayzilla uses to provide a user-friendly application for booking hotel rooms. They were leading the Indian markets for their unique room booking concept because there was no such concept at the time they launched their services in India. But, there was a drawback to stayzilla that people were not much aware of the concept of online room booking.

Stayzilla recorded as unsuccessful startups in India when news came that it is lost in debts. And due to unable to repay the funds, it shutdown.

Take away

In this context, we have listed the top 8 unsuccessful startups in India along with the reasons behind their failure. And after reading this post we can learn from the mistakes that these startups have performed.

As per our reading, we got an insight into why startups fail in India? And most of the commons reasons are insufficient funds management, competition, and unable to cope up with the dynamic environment.

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