12 Indian Startups That Shut Down This Year: Report

In 2024, a series of startup shutdowns in India signaled a shift in the country’s evolving startup ecosystem. These closures are more than just stories of failure; they offer critical lessons about the challenges faced by young ventures striving to make their mark in an increasingly competitive market. The reasons behind the closures were diverse: from regulatory hurdles and financial instability to poor business models, lack of product-market fit, and challenges in scaling. This article will delve into the stories of 12 prominent startups that ceased operations in 2024. These companies include Bluelearn, GoldPe, Greenikk, Inshurst.ai, Investmint, Kenko Health, Koo, Muvin, My Tirth India, Nintee, Stoa, and Toplyne—all of which made significant contributions to the startup landscape but ultimately faced insurmountable challenges that led to their downfall.

One of the first companies to shut down was Bluelearn, an edtech platform that had gained significant attention in the early stages. Launched in 2021 by Harish Uthayakumar and Shreyansh Sancheti, Bluelearn aimed to build a community-driven learning platform where students could help each other out with academic queries. What started as a simple Telegram channel for peer-to-peer learning quickly grew to a community of over 1.5 lakh students across 5,500 colleges in 20+ countries. The startup raised approximately $3.95 million from investors like Elevation Capital and Lightspeed. Despite its initial success and an impressive user base, Bluelearn faced significant difficulties when it came to monetizing its platform. The core challenge lay in converting the large community into a sustainable business. Bluelearn struggled with scaling its operations and failed to find the right product-market fit, leading to its eventual closure in July 2024. This failure is a stark reminder of the importance of balancing growth with sustainable business models in the edtech sector.

Next, the shutdown of GoldPe in 2024 was another example of a promising fintech startup that couldn’t weather the challenges of the market. Founded in 2023 by Parth Shah and Yagnik Raolji, GoldPe offered a platform where users could invest in digital gold and earn rewards through its prize-linked savings plans. The company quickly attracted attention with its innovative approach and raised INR 71 lakh in seed funding from 100X.VC and a group of angel investors. However, GoldPe struggled with a flawed business model and low revenue generation. Despite securing 2.25 lakh users, the startup’s revenue was only INR 1.5 lakh, a clear sign of its financial difficulties. The model relied on a third of its revenue to fund weekly prize draws, which ultimately didn’t prove to be a scalable or sustainable approach. Despite plans for expansion into other saving assets like fixed deposits and recurring deposits, GoldPe couldn’t raise further funding, and its operations were wound up in 2024. This closure highlights the critical importance of having a clear, sustainable business model, especially in a crowded fintech space.

Another agritech startup, Greenikk, also faced a tough road to sustainability and was forced to shut down in September 2024. Founded in 2020 by Fariq Naushad and Previn Jacob, Greenikk initially aimed to support banana farmers through a digital platform that provided a range of services, including financing, crop advisory, insurance, and market connections. Despite securing INR 8.4 crore in funding from 100Unicorns, the company struggled to find a sustainable product-market fit. The biggest issue faced by Greenikk was loan defaults by farmers, which compounded its financial challenges. While the company initially attempted to build an ecosystem around banana farming, it ultimately couldn’t scale its operations beyond the financial services aspect. The platform’s inability to expand beyond its niche offerings led to its closure, demonstrating the difficulties in establishing a scalable business in the agritech sector, especially when working with a large base of small farmers.

Inshurst.ai, a generative AI startup focused on the insurance industry, also shut down in 2024. Founded in 2022, Inshurst.ai offered AI-driven infrastructure designed to help insurance professionals with tasks like product searches, compliance research, and underwriting. Despite its innovative approach, the company struggled to scale its business in the highly conservative and regulated insurance sector. The challenge of reaching a large customer base and adapting to industry-specific needs led to the company’s failure. Inshurst.ai was unable to secure additional funding, and after just over a year of operation, the startup ceased its activities in September 2024. This closure exemplifies the challenges faced by generative AI startups, particularly those trying to target traditional industries where adoption of new technologies can be slow and fraught with regulatory hurdles.

Investmint, a fintech startup founded in 2022 by Aakash Goel and Mohit Chitlangia, also shut down operations in 2024 after struggling with its business model. Investmint aimed to help users make informed investment decisions through data-driven signals. The platform raised around $2 million in seed funding from Nexus Venture Partners but faced significant issues when it came to scaling its user base and generating reliable revenue. Despite offering useful tools for wealth management, Investmint failed to establish a product that could differentiate it from other well-established players in the wealth management and investment space. After a year of struggling with user acquisition and engagement, the company decided to shut down and return capital to its investors. This closure once again highlights the fierce competition in the fintech space and the importance of having a clear, differentiated value proposition.

Another prominent startup that was forced to shut down was Kenko Health, a health-tech company that provided subscription-based healthcare services. Founded in 2019, Kenko Health aimed to offer affordable OPD benefits, medicines, and other healthcare products to customers. The startup raised significant funding and had garnered attention with its innovative approach. However, Kenko Health faced a major setback when it couldn’t secure the necessary insurance licenses from the Insurance Regulatory and Development Authority of India (IRDAI). Despite its early success and rapid growth in revenue, which soared from INR 5 crore in FY22 to INR 85 crore in FY23, Kenko Health was unable to overcome regulatory barriers. By August 2024, the company ran out of funds and had to shut down its operations. This incident highlights the crucial importance of regulatory compliance in the health-tech sector and the complexities of obtaining the necessary approvals in a highly regulated industry.

Koo, the Indian microblogging platform founded in 2020, was another casualty in 2024. Despite early success, Koostruggled to compete with global giants like Twitter (now X). Koo tried to differentiate itself by focusing on regional languages and catering to Indian users, but the platform’s growth plateaued due to issues related to user retention and engagement. Despite raising over $50 million from investors like Tiger Global, Accel, and Blume Ventures, the company faced difficulties in scaling its operations and securing additional funding. The inability to raise a Series C round, combined with mounting losses and minimal revenue, led to the shutdown of Koo. The platform’s failure serves as a reminder of the challenges faced by homegrown alternatives when trying to compete with global incumbents.

Muvin, a youth-focused neobanking platform, also shut down in 2024 after the Reserve Bank of India (RBI) ordered a ban on co-branding arrangements for UPI. Muvin had partnered with Livquik, a non-bank PPI issuer, to offer co-branded prepaid cards to students. However, when RBI issued a directive prohibiting co-branding for UPI, Muvin found itself in a regulatory bind. Despite raising $4 million from WaterBridge Ventures, the startup couldn’t recover from the regulatory setbacks and had to shut down. The case of Muvin underscores the challenges faced by fintech startups in India, especially when navigating complex regulatory environments.

My Tirth India, a spiritual tech startup, also closed its doors in 2024 due to a shortage of funds. The company offered a one-stop solution for pilgrims, providing services like travel loans, online pooja, prasad delivery, and astrology. Founded in 2019 by Indraneel Dasgupta, My Tirth India gained traction initially, but financial difficulties, compounded by the death of its principal investor, led to its downfall. Despite its niche market, the company struggled to scale its operations and was unable to secure the necessary funds to continue its journey. The closure of My Tirth India highlights the risks associated with relying on a single investor and the challenges of scaling in the spiritual tourism sector.

Nintee, an AI-powered personal development platform, faced similar challenges and shut down in 2024. Founded by Paras Chopra, Nintee aimed to offer a personalized growth tool for users. Despite raising $3 million in funding, the platform struggled with user retention and scaling. Nintee was unable to maintain its initial momentum, and the founders eventually decided to wind down the business. This closure underscores the challenges of building a user-centric product in the crowded AI space, where retention and engagement are critical.

Stoa, an ed-tech company offering alternative MBA programs, was another casualty in 2024. Stoa targeted working professionals who wanted to pursue an affordable, practical MBA without leaving their jobs. Despite raising $1.5 million in seed funding and serving over 1,500 students, Stoa struggled to expand its reach and scale its offline operations. Intense competition from established players like Masters’ Union and other ed-tech startups contributed to its downfall. The closure of Stoa in November