StartupTalky

Tag: Shut Down

  • Ohm Mobility Shuts Down: EV Startup Ends Operations After Failed Pivot

    Ohm Mobility, a firm that provides EV financing and leasing, is now closing its doors, joining a growing list of startup closures. Despite many turning points along the way, the five-year-old startup was unable to scale, according to cofounder and CEO Nikhil Nair.

    Why Ohm Mobility Shut Down: Inside the Struggles of a Promising EV Fintech

    In a LinkedIn post, Nair stated that although the company was unable to develop a sustainable and scalable strategy, it gained firsthand knowledge of what works, what doesn’t, and why. After failing at a few business models, the company now has a thorough understanding of them.

    Nair created Ohm Mobility in 2020 to help EV fleet operators, manufacturers, and battery companies access finance by connecting them with banks and other financial institutions. In 2022, Nikhil Saigal, a former executive of Onfido, a provider of IT solutions, became the second cofounder and CBO of the firm.

    Ohm Mobility’s Journey

    The firm made it simpler for financial institutions to grant them loans by using data (IoT data) from EVs to comprehend and lower the financing risks. Notable investors include Antler India, Blume Ventures, and Catalyst Fund. A few angel investors helped Ohm Mobility raise about INR 5 Cr during its existence.

    Ohm Mobility’s Pivot to Daily Earners: A Last Attempt at Survival

    According to the cofounder’s statement regarding business pivots, Ohm Mobility recently changed its name to Ohm Daily in order to concentrate on offering financial products for daily earners, especially gig workers and professionals in the mobility industry (such as auto drivers).

    Since its founding, Ohm Mobility has not submitted its financial statements to MCA for any fiscal year. It’s noteworthy that this is not the only modern IT company to close this year. A lacklustre response from the market led media houses to report in June that Altigreen, a three-wheeler EV manufacturer, was on the verge of closing its doors owing to a lack of finance.

    In addition, BluSmart and Log9 also had turbulent declines in recent months. Due to their inability to scale and lack of investor interest, two early-stage firms, rapid commerce venture Blip and AI startup subtl.ai, have both recently ceased operations.

    Wider Pattern: Are Indian EV Startups Running Out of Charge?

    The auto industry in India is confronted with a transitional challenge: how to construct the future without halting the present. The majority of established manufacturers still operate ICE and EV programs concurrently, frequently sharing resources for engineering, validation, and procurement. It is now anticipated that these overlapping structures, which were intended for gradual development, will bring about revolutionary upheaval.

     An extremely disjointed execution chain is the end outcome. According to Vector’s research, more than 60% of Tier-1s are involved in over ten programs at the same time, spanning several OEMs, with no insight into volume projections or design maturity.

  • Blinkit Shuts Down in Pune by FDA for Operating Without License

    In the Balewadi-Baner neighbourhood of Pune, the dark store “Energy Darkstore Services”, one of the stores of Blinkit, has been the target of significant action from the Maharashtra Food and Drug Administration.

    The FDA has ordered this establishment to close immediately due to numerous major irregularities and operating without a valid food licence. Following an on-the-spot examination on June 5, this action was conducted.

    This establishment is classified as a food business under Section 31(1) of the “Food Safety and Standards Act, 2006” and requires a licence to operate, per the order issued by the FDA Joint Commissioner’s Office. Energy Darkstore Services was nevertheless delivering and keeping food items without a legitimate licence.

    FDA Inspection Reveals Massive Irregularities

    Numerous abnormalities that Blinkit engaged in during its regular business operations were discovered during a recent FDA team examination. Although a licence was applied for, it was never submitted. The food was stored in rusting racks.

     It was discovered that the store’s cleanliness regime was incredibly subpar. Food package information was discovered to be inaccurate. The employees lacked hygienic certifications and wore no protective gear, such as headgear. For milk and fruits, the necessary certificate was not accessible.

    FDA Giving Stern Warning to Store Manager and Owner

    Omprakash Mantri, the establishment’s owner, and Jai Arvind Bhaskar, the store manager, were found guilty of breaking food safety regulations. Legal action has been threatened against each of them.

    In June 2024, Energy Darkstore Services requested a food licence; however, the licence was denied since the necessary paperwork was not correctly provided. In spite of this, the corporation proceeded to distribute food, which is against the law. The FDA has made it clear that more than one retailer would be affected by the action.

    Every dark store and online food distribution centre in Pune is undergoing a thorough inspection. According to FDA officials, any operation will be deemed a violation of the regulations as long as there is no legal food licence.

    However, by filing all the necessary paperwork, the business can receive a licence under the Food Safety Act and resume operations if it so chooses.

    Dark businesses deliver food straight to customers who place internet orders. According to officials, if these establishments fail to adhere to safety, storage, or cleanliness criteria, it is directly affecting the public’s health.

    The Food Safety and Standards Act will be strictly enforced, the FDA has warned, if it is discovered that such operations are running without a licence.

    This move serves as a reminder to all other underground businesses to promptly obtain legitimate documents. According to FDA authorities, this is only the start. The watchdog body is currently monitoring all dark businesses in Pune city.

  • leap.club Shuts Down Amid Funding Crunch and Retention Woes

    The women-only community business leap.club is shutting down its operations after raising $2.3 million since its founding in 2020 because of expensive customer acquisition costs and retention issues.

    The startup used LinkedIn and Instagram to publicise the decision operations. The firm claimed to have done a lot of things correctly in terms of atmosphere, space, member experience, and event planning, but the unpleasant reality is that the acquisition and retention metrics weren’t strong.

     Leap.club announced that it will close its offline club in Bandra, Mumbai, which it opened last year, as part of the decision. Additionally, it plans to shut down its app and online community by the end of this month.

    The business went on to say that it had to make the difficult choice to put the app and online community on hold by the end of May.

    Climbing the Success Ladder

    Leap.club entered an expansion phase in 2024 after experiencing rapid growth in 2023. In the same year, it moved its headquarters from Gurugram to Mumbai and opened its first actual community workspace in the nation’s financial centre.

    Mumbai’s offline workspace included meeting spaces, workstations, and carefully chosen experiences. Remarkably, leap.club also sought to establish a real workspace of this kind in Bengaluru.

    According to the startup’s “2024 wrap” blog, it staged over 50 social and professional events and onboarded 450 paying members for its Mumbai club. But there were issues with the expansion as well.

    The firm claimed to have closed a capital round during the year, but it abruptly collapsed and never came to fruition. According to leap.club, the company is surviving some difficult times and is working as a team of ten people.

     It’s challenging, but it’s also an opportunity for the brand to concentrate on what really counts and work harder to recover.

    The Downfall

    The startup’s journey appears to have ended abruptly due to a lack of finance and an uncertain business plan. When the firm first started out, it used a call-based sales technique, onboarding users by speaking with them on the phone.

    The first 10,000 members were onboarded in 2.5 years; however, this methodology limited the startup’s options for scalability and caused “team fatigue”.

    Leap.club shifted all of its membership buys online in 2023. But this led to a short-term revenue shortage. The startup’s financials also showed the difficulties with its business plan.

     According to Tofler, their net loss increased from INR 3.38 Cr in the previous fiscal year to INR 5.59 Cr in the fiscal year that ended in March 2024 (FY24), a 65% increase. In addition, its sales fell 54.1% from INR 5.7 Cr in FY23 to INR 3.7 Cr in the reviewed year.

  • My Tirth India Shuts Down Its Operations Due to Lack of Funds

    My Tirth India, a spiritual tech business, declared on Monday that it is ceasing operations as a result of a serious shortage of funding.

    Following the passing of its primary shareholder and mentor Subrata Roy, the creator of Sahara India Pariwar, the company is facing a funding shortage, according to founder and chief executive Indraneel Dasgupta.

    By urging individuals to reconnect themselves with their history, culture, and traditions, the firm sought to provide as many job opportunities as possible in urban, suburban, and rural areas.

    “However, we regret to inform you that, following the tragic passing of our principal shareholder and mentor, we are now in a financial position where we must close the office,” Dasgupta stated.

    What My Tirth India Was Offering?

    The company, which is situated in Mumbai and was established in 2018, is a pilgrimage and darshan website that provides a one-stop shop for pilgrims to travel throughout India’s sacred attractions. A variety of online services, including online prasad and puja facilities, astrological and ayurvedic consultations, and funeral services, are also provided by the organisation. In addition, it offers customised trip packages for devotees.

    Because of the current state of affairs, company was unable to move forward with its operations. It was already operating with a small workforce that is working without being paid, without having an office, and working from their homes. “At this point, we are unable to continue operations since we do not have the financial resources to do so,” Dasgupta continued.

    Spiritual and Religious App Market in India

    Over the past few years, companies such as Peak XV Partners, Elevation Capital, Titan Capital, and India Quotient have made significant investments in India’s rapidly growing market for religious and spiritual applications. Among the most important companies operating in this sector are Vama.app, Astrotalk, AppsForBharat, DevDham, and Utsav.

    Using funds from Left Lane Capital and Elev8 Venture Partners, the digital astrology platform Astrotalk was able to raise $9.4 million on June 7th.

    A well-known media outlet said on July 7 that the fortunes of apps that provide spiritual and devotional services have been revived as a result of a post-pandemic boom in internet engagement and a growing interest in spiritual activities in recent times both of which have occurred in recent times.

    A number of business analysts have compared this trend to the quick growth in digital payment apps like Paytm that occurred after the demonetisation of high-value cash in 2016. The Ram Temple in Ayodhya was inaugurated in 2016, which contributed to an increase in the number of people using devotional applications.

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    StartupTalkyPooja Uniyal