More than 200 new businesses shut down in 2016

While 2015 was a year of expensive financing rounds, 2016 is a year of unforgiving reality for the nation's startup environment: 212 new companies have not made due to see 2017. What's more, the number is half higher than a year ago, when around 140 new companies were closed down, as per information examination firm Tracxn.

The greatest loss in 2016 was staple conveyance startup PepperTap, which was named the greatest rivalry to BigBasket a year ago. It beat the rundown of new companies that were shut down subsequent to having raised the most astounding financing from speculators. The organization, which began operations in 2014, had raised more than $51 million from an association of enormous financial specialists, including Sequoia Capital, Saif Partners and online business major Snapdeal. In April, its organizer Navneet Mishra declared the choice to close the basic need business.

Seven out of main 10 new companies that were closed down in the wake of raising sizeable assets were established in or after 2014. These included online messenger booking stage Parceled, which twisted up business in June 2016, and DoorMint, which close its on-request clothing administration in September because of absence of assets.

"This is a characteristic movement," "When you take a gander at the biological community, not more than 20% of the new businesses succeed. A few years after a startup's initiation is a period when you see high mortality. There is a lot of rivalry, and just a couple survive," says Mohan Kumar, ED, Norwest Venture Partners India.

Since a great deal of new companies were established amid 2013, 2014 and 2015, it's common many have closed shop, Mohan Kumar includes.

The rundown additionally incorporates Buildzar, a web based business commercial center for development material. It halted administrations this month, only 11 months in the wake of raising $4 million from Puneet Dalmia, MD of Dalmia Bharat.

"There is a developing narrow mindedness for organizations which are not performing; and there is expanding weight from financial specialists who are firmly observing what works and what doesn't. Financial specialists realize that there is dependable capital that this nation can't bear to waste, so there is almost no legitimacy in permitting such organizations to keep running," says Ajay Hattangdi, CEO of wander obligation supplier InnoVen Capital.

The Temasek-upheld InnoVen Capital, had loaned $4 million to PepperTap last December. Hattangdi says the moneylender was steady of PepperTap's choice to close down. The originators ensured the credit commitment was reimbursed in full.