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Check with seller failed-but-not-forgotten-lessons-from-startups-that-didnt-make-it | Ideabaaz Dangal Mumbai

Published date: May 28, 2025
  • Location: Mumbai, Mumbai, Maharashtra, India

We often celebrate the startups who have become the unicorn, with high valuations, or big innovations. But with every successful story, there are so many startups that have failed and some of them were even promising in the start. While failure in the startup world is common, it is not the end. In fact these failures often give a biggest life lessons for startup, both for entrepreneurs and the ecosystem.


Let’s take a look at a few startups that failed, understand why they did, and take the lessons.


 


1. TinyOwl – The Cost of Rapid Expansion


What happened:
TinyOwl was launched in 2014, TinyOwl was based on food delivery, the startup got quick fame and get lodes of funding from big investor. However, in hurry to capture the market, they expanded too fast across multiple cities. This decision, without logistic and financial planning, led to massive losses. And in the end it led to internal chaos, and in 2016, the company was acquired and ceased to exist.



Lesson learned:


Trying to capture the big market too quickly without strong foundations can be harmful for the company/startup. Before expanding, ensure products-market, operational efficiency, and a clear understanding of the new markets. Discissions should be strategic, not emotional.


 


2. Stayzilla – Visionary but Misaligned


What happened:
The idea behind Stayzilla was to be the Airbnb of India, offering homestays and budget friendly Guest homes. The idea was great but they could not differentiate themselves with highly competitive companies. they ignore the fact that the efforts are required to build a trust between hosts and guests. And then legal work troubles and funding also became the issue.


Lesson learned:
Even a great idea can also fail when the alignment is not right with market realities. Understanding customer behaviour and the ups and down in the market is also important. New ideas must walk hand-in-hand with timing.


 


3. Koinex – When External Factors Kill a Startup


What happened:
Koinex was one of the largest cryptocurrency exchanges in India. In 2019, due to the lack of regulatory clarity in India and increasing banking restrictions on crypto operations, the company was shut down.
Lesson learned:
If your startup does not have legal confirmations, then you just don’t have to rely on product and marketing team, you also going to need legal team.


 


4. Frankly.me – Not All Trends Are Here to Stay


What happened:
Frankly.me was a video Q&A platform where celebrities and influencers were going to answer fans questions via video. Initially it was gaining a lot of attraction, but the idea was lacking long term engagement. As social media applications also added similar features, Frankly.me couldn’t compete.

Lesson learned:
If you are going to build a product on the basis of trend it will going to end with the trend. You need to keep updating your product with the new needs or new trends.


 


5. LocalBanya – When Logistics Become a Burden


What happened:


LocalBanya was an online grocery delivery platform launched in Mumbai. The start was good but eventually it failed due to lack of resources in delivery system, unpredictable demand, and high delivery costs.


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Keywords: startup, business, incubation, incubationcenter, entrepreneur, innovation, investment, funding, ideabaazdangal, zeetv,business idea, angel investors, new business ideas, best business ideas, startup ideas, startup business ideas, startup investors, funding for startup, venture capitalists, series a funding, idea investors, round a funding
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