ETRetail.com: What "Friendly" Bankruptcy Code Meant For Failed Startups… Fail Fast, Fail Cheap, And Move On!!

There has been a remarkable, and rather unfortunate, trend in India of startups shutting shop within a few months of their initiation. These comprise of services ranging from food and grocery delivery to fashion and logistics services and included the likes of PepperTap, Ola Store, Fashionara, Klozee, Dazo, Spoonjoy, Langhar, DoneByNone, TalentPad, to name a few. The trend is more prevalent in e-commerce and more specifically e-commerce platforms which are bleeding money due to heavy cash funded business model, which take several years of hard work, persistence and patience to break-even.

Bankruptcy is likely to be the last thing the founders of these ventures have in mind. Some of these failed startups have admitted the reasons behind closure: these range from premature or early expansion of the business across cities due to investor pressure despite lack of funds to sustain the same, inability to hold on their own against competition, inability to sustain deep