Startups That Shut Shop In 2016!

As the year comes to a close, we contemplate on this year’s achievements and look forward to the next year. There has been leaping development with Internet of Things, Augmented and Virtual reality and wearables. Operating with the startup culture, we are constantly on the lookout for brilliant ideas that either bloomed into beautiful setups and ones that lost its charm halfway through launch.

Startup that shuts in 2016


Here is a list of startups that shut their operations soon after their launch:


The restaurant delivery service that was given funding of more than $27 million, stopped services from May 22nd. The service was previously spread over 11 major cities nationwide.

TinyOwl is amongst the many food delivery startups in India that have succumbed to high cost of logistics and oversaturated market.

During the strife period, TinyOwl was forced to conduct mass layoffs last year. This is a clear case of “There is already an app made for this service”.


This is a classic case of bigger sharks intimidating the fishes. This Gurgaon based company was launched in November 2014 to provide on-demand grocery delivery.

In September last year it raised $36 million from Snapdeal while the final lot came in December. It also had enough capital to acquire struggling hyper local grocery chain called Jiffstore.

However, the shutdown was not justified for, by the company. What we get to know is: They raised almost $51 million in risk capital from the lead investors in India. But lack of demand caused by bigger players like Grofers and Big Basket as well as poor unit economics saw its downfall.


One of the many home delivery food ventures, Zupermeal had a strong backing by celebrity chef Sanjeev Kapoor. This app however, was one of the many home delivery apps that started out big with a $2 million in seed funding from the super chef along with two unnamed foreign investors in October 2015.

There does not seem to be a concrete reason or press release, but the news itself was released by many flustered users who saw error messages while try to download the app and open its website.

Also, its co-founder had reportedly joined LogiNext as a vice president. We get to know that there were managerial hiccups.

Frankly Me

This was a fresh idea that was launched in 2014 to offer video blogging services. This was to morph into the famous Facebook Live that we have today. This facilitated real time and offline video making, to initiate discussions and interact with the public.

This idea was best utilized by brands and professionals to enhance and capture their online customers by creating brand communication strategies. This was considered reliable and worked like a video infrastructure facility.

However, a clear reason as to why this company was shut down? No one knows. Reports say that close to 40 employees were given a lay off post which the company had to shut down due to lack of funding for its renovated business model.


Inspired by websites like Buzzfeed and Scoopwhoop, this blog curator app was a bigger version of Inshorts. This app collects popular blog posts and images from news sites and display them 10 at a time.

The USP was a unique blend of photos, GIFs, videos and links with amazing visual layout. It raised a $1 million from investors like Times Internet.

The slipup happened when there were no app updates and the deal with Times Internet for acquisition went off the rails. This ultimately led to the shutting down of an app that would have easily defeated its competitors.

These five are doodleblue’s picks of fave and rave apps that foozled mid way. Given a competitive startup ecosystem where there are 100s of apps for one single service, luck, money and sharp business acumen play major roles.

Collaborator: Shruti Balakrishnan


Author Bio

Tripti Chordia

Tripti Chordia, is the CMO at doodleblue, a mobile app development company providing creative technology solutions to its clients. She completed her masters from Leeds in Advertising & Marketing and has worked at a few media houses prior  to doodleblue. Tripti is responsible for online strategy and creative digital marketing  campaigns for doodleblue. 


ABOUT doodleblue

doodleblue is a boutique creative technology solutions consulting firm. Our focus is to help entrepreneurs, start-ups & businesses succeed with their technology solutions. We love working on cutting edge technologies like Augmented Reality, OCR, Google glasses, and more in the mobility space.