Failed Startup: Done by None
Done by None - A Funded Startup that FailedI am writing after a long time. I was focusing upon my upcoming startup that is an intelligent store by the name of Arza.in; I am going to write about a funded startup that was sailing smooth, however by the end of 2014, they ceased all their operations. The online private label which had its own store, also sold its products on the online marketplaces, however in an apologetic post on Facebook it promised to make up to its consumers whose orders have been pending. Done by none was based at Gurgaon and had been doing good, this is what they posted on their fb page: Amarinder Dhaliwal, Vijesh Sharma, former executives of Bennett, Coleman & Co. Ltd (BCCL), along-with Vijay Misra, a former director of the TCNS Clothing Company (of ‘W’ fame) had launched DoneByNone in2012. The company was initially launched in February 2011 as Handspick.com and later it was rebranded to DoneByNone in March 2012. The firm had raised an undisclosed amount in funding from early-stage venture capital fund Seedfund. Ecommerce is a tough nut to crack. Startups which have been surviving so far in the game are the heavily funded ones, notorious for burning investor money and reporting huge losses. All the three co-founders, Amarinder Dhaliwal, Vijesh Sharma, and Vijay Misra had great experience in e-commerce, internet businesses, and technology, still the bug of hyper competition bit the startup. Reasons for Failure:
- It failed to handle high demand, at the time of shutdown they had many orders pending.
- Pricing was very high that limited the demand and increased the expectations of customers.
- It sold cheap stuff from China for high prices that hampered the brand name.
- Many refunds for the returned products were not processed that made customers loose confidence.
- Competition with Amazon, Snapdeal, Flipkart and others.
- No proper customer care made customers angry.
- Co-founders wanted to move on.
- Done by None managed to get more than 3.5 million likes on facebook that shows it was popular among people.
- Attractive campaigns made the buyers temped.
- Done by None is still selling through PayTm, Amazon, Jabong etc.