2024 was a rollercoaster year for Indian startups. Amid the excitement of new unicorns, several ventures faced hard truths, with some shutting down entirely. From insurtech to edtech, these closures reveal the challenges of innovation in a competitive market. Let’s delve into the stories of startups that couldn’t survive the year.These closures underscore the volatility of the startup ecosystem and the critical importance of sustainable growth models.
Kenko Health
Sector: Insurtech
Shutdown Date: August 2024
Kenko Health closed its doors after failing to secure equity capital. Months of unpaid salaries and a 20% workforce reduction in 2023 preceded the shutdown. Backed by Peak XV Partners and Orios Venture Partners, the company now faces legal proceedings at the National Company Law Tribunal due to outstanding debts.
Koo
Sector: Social Media
Shutdown Date: July 2024
India’s homegrown alternative to Twitter, Koo, shut down due to high technology costs and unsuccessful partnership talks. Founders Aprameya Radhakrishna and Mayank Bidawatka cited insufficient funding as the key challenge in maintaining operations.
Toplyne
Sector: Sales Software
Shutdown Date: October 2024
Despite backing from Tiger Global, Bengaluru-based Toplyne couldn’t achieve the scale or product-market fit required to sustain its operations. After 3.5 years, the company made the tough decision to wind down and return investor capital.
My Tirth India
Sector: Spiritual Tech
Shutdown Date: August 2024
Aimed at simplifying pilgrimages across India, My Tirth India ceased operations due to a funding crunch following the demise of its principal shareholder, Subrata Roy of Sahara India Pariwar.
Bluelearn
Sector: Edtech
Shutdown Date:July 2024
Bluelearn, a platform for upskilling and job finding, shut down after raising $4 million in funding. The company has pledged to return 70% of the capital to its investors, including prominent backers such as Elevation Capital and Lightspeed.
Stoa School
Sector: Edtech
Shutdown Date: November 2024
Backed by Zerodha’s co-founder Nithin Kamath, Stoa School offered a six-month MBA program but closed operations without disclosing specific reasons.
The Bigger Picture
2024 was a year of contrasts for Indian startups. While a few reached unicorn status, many struggled to navigate funding challenges, high costs, and market demands. These closures underscore the volatility of the startup ecosystem and the critical importance of sustainable growth models.
