The Lost Founders is our latest series considering the Indian start-ups’ shutdown in 2017. Today we are here with another start-up story Eatonomist. Let’s discuss the reason behind shutting down of the startup, the economical impact, overall impact on the industry and the mistakes they made which led the start-up toward Death Valley. The Lost Founders is a series in which we will discuss the start-up stories and the reason behind the biggest failure of the start-ups.
Category: Food and Beverage
Closed in: 2016
Funding: In May 2016 the startup had raised seed investment from MCube Capital Advisors Pvt Ltd the amount was undisclosed. Within a year after funding the startup shut down, the reason behind the shutting down was still not clear. “We will be back shortly” the websites current status.
Eatonomist startup was an online gourmet food delivery prepared in their own kitchen focusing the healthy meal by delivering the right amount of the calorie in the food, counted in the range between 300 to 500 calories. Over 100 curated Indian and International gourmet recipes were available. A calorie counted gourmet healthy meal planner helping people to lead a happy and healthy lifestyle. Eatonomist menu included sandwiches and desserts besides a range of Indian and International foods.
As we always discussed the loss of employment cause it is linked in many ways other than sitting job done by the workers. Any startup working in any area provides employment in many ways to all either the office work, sitting job or house-keeping work. Pre shut down the startup had raised an undisclosed amount of funding from investors, the invested amount of the investors was a pure loss for investors and the initial amount invested by the co-founders during investment all is an actual fair loss to the economy.
Eatonomist spends a huge amount on its branding like the advertisement; they spent a very large amount on it. Lack of funds headed the startup toward the end. From the shutdown, employees left their jobs and the biggest loss to the country’s economic growth.
We are starting with some reviews about the start-up who tried the services provided by the start-up Eatonomist the healthy gourmet meal in past, in short, their old customers describing their experience with the company. Below are some reviews:
…Eatonomist is really good and a passionate healthy food-venture…I enjoyed my food-eating experience…I would like to go with 4.5 (being honest)…With big players storming the healthy food segment especially in Gurgaon, I have reviewed nearly 90% plus healthy options in Delhi NCR…like to rate Economist 4.5…like to eat more of their treasure-food in store… – a customer
…mutli grain pav (never heard, never tasted) with bhaji…Awesome taste, awesome packing, garnishing…If you want healthy, quick bite eats with Eatonomist… – a customer
…aligned to exploring healthy gourmet options in Delhi NCR…tried-out their food…Eatonomist is another food venture which provides healthy food…to lead a healthy lifestyle, the target-audience being the corporate working class of people living in Gurugram – the Millennium City… – a customer
So from above presented some review, defined their experience with the startup Eatonomist. We can easily analyze the review about the company from the consumer’s reviews.
Anisha Dhar joined the food delivery service launched by cab-hailing service Uber, UberEATS and another co-founder Nupur Khanna’s LinkedIn profiles show that she left the company in November 2016. It is assumed that the lack of the funding led the company toward shutting down. The startup was developing well but the lack of funds ceased the path of the success and the start-up ended.
Lack of Proper Outlining:
Well if we saw an overall overview of the startup then there are lots of more question comes up to the mind. The founders didn’t explain the reason behind the shutdown but it is assumed that incapability to raise funds from the market. Market research, competitor analysis, understanding of market challenges within the industry, customer demands and requirements, psychoanalysis of the customers and market trends are some of the most important aspects of the business that are most important to be studied well before entering into any industry.
But what our market research explicates the reason behind failure was unsustainable business models and the poor unit economics. In India, the saddest part is unethical business conduct and entrepreneurial inexperience because of poor corporate governance. Lots of Indian startups failed to sustain their existence especially the food-delivery segment startups, such as Bite Club, Zuper Meal, MealHopper, Zeppery, Frsh.com and iTiffin, etc.
The figures itself shows the states of customers here psychoanalysis of the customers and market trends is the basic thing to understand the mental state of the consumers with the trend. In India, the Eatonomist was a success and people liked their idea; however, this type of idea needed a deep pocket to give the startup a long life.
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