Why 2016 was a rough year for Indian startups

As India’s startup winter closed in, temperatures plummeted and the pace and value of deal-making followed suit.

According to data from Tracxn, a provider of data on investments in startups, the value of deals fell over 50 per cent in the fourth quarter of 2016, even as the number of deals slipped over 30 per cent.

As investors snapped their purses shut, one-time favourite sectors (look no further than the clear-out in foodtech ventures) saw funding dry up, as much touted startups withered in a hostile environment. Here’s a snapshot of how the startup ecosystem fared in 2016:

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Many ventures folded

1) PepperTap (2014),Gurgaon
Total Funding: $51.2mn

Closed marketplace for hyperlocal grocery delivery.

2) GoZoomo (2014),Bengaluru
Total Funding:$6mn

Online marketplace to buy and sell used cars.

3) Parcelled (2014,Bengaluru
Total Funding: $5mn

Online courier booking platform.

4) DoorMint (2014),Mumbai
Total Funding: $3mn

Mobile-based platform for on-demand laundry services.

5) ZuperMeal (2015),Mumbai
Total Funding: $2mn

Open marketplace that delivers food from home chefs.

6) TruckMandi (2015),Delhi
Total Funding: $2mn

Online marketplace for freight transport.

7) Murmur (2011), Gurgaon
Total Funding: $1.1mn

Mobile-first entertainment and news provider.

8) Frankly (2014),Delhi
Total Funding: $0.6mn

Smartphone video Q&A platform.

9)Zimply (2014),Delhi
Total Funding: $0.5mn

Online content-driven interior designer and furniture marketplace.

10) Bite Club (2014),Gurgaon
Total Funding: $0.5mn

Mobile-first ordering of wholesome meals.

Also Read: Will the surge in digital payments sustain?



Job losses have piled up

Askme: 4,000
Ola: 1,000
Flipkart: 700
Indiahomes:400
Zomato: 300
Grofers: 200
Tinyowl: 200
Commonfloor:150
Peppertap: 550

Well-known names managed to escape the squeeze

Ibibo group (2007)
Funding Date: February ’16
Investors: Naspers, Tencent

Funding Raised in 2016: $250 million
Total funding till date: $250 million

Snapdeal (2010)
Funding Date: February ’16
Investors: Ontario Teachers' Pension Plan, Bennett Coleman, Iron Pillar Fund


Also Read: Innovative ideas will continue to get funded even as entrepreneurs hunker down to seek out paths to profits

Funding Raised in 2016: $200 million
Total funding till date: $1760 million

Makemytrip (2000)
Funding Date: January ’16
Investor: Ctrip

Funding Raised in 2016: $160 million
Total funding till date: $208 million

Hike messenger (2012)
Funding Date: August ’16
Investors: Tencent; Foxconn Electronics, Tiger Global Management, BSB


Funding Raised in 2016: $175 million
Total funding till date: $261 million

Bigbasket (2011)
Funding Date: March ’16
Investors: Bessemer Venture Partners, The Abraaj Group, Helion Venture Partners, IFC,


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Funding Raised in 2016: $150 million
Total funding till date: $247 million

Cartrade (2009)
Funding Date: January ’16
Investors: Temasek, Marche Capital, Warburg Pincus

Funding Raised in 2016: $145 million
Total funding till date: $188 million

Book my show (2007)
Funding Date: July ’16
Investors: Stripes Group, Accel Partners, SAIF Partners, Network18

Also Read: Foodtech resembled a startup graveyard in 2016

Funding Raised in 2016: $81.5 million
Total funding till date: $128 million

Rivigo (2014)
Funding Date: November ’16
Investor: Warburg Pincus

Funding Raised in 2016: $75 million
Total funding till date: $115 million

Incred (2016)
Funding Date: August ’16
Investors: IDFC, Alpha Capital

Funding Raised in 2016: $74 million
Total funding till date: $74 million

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