by Shahu Pawar | Jul 27, 2025 | aSAFAL
Startup Name: Resso (India)
Founded: 2020
Closed On: January 31, 2024
Business Model:
Resso was a music-streaming app launched by ByteDance, the parent company of TikTok. It operated as a premium music streaming service, offering users access to a vast library of songs with features such as personalized playlists and social sharing. Resso initially offered both free and paid tiers, but in May 2023, it became a subscription-only service in India, aiming to improve user experience and increase opportunities for music rightsholders and artists.
Reason for Closure:
Resso shut down its operations in India due to a government crackdown and regulatory scrutiny. The Indian government ordered the app’s removal from the Google Play Store and Apple App Store in December 2023, citing concerns over the company’s data handling practices and the use of proprietary algorithms to process Indian users’ data. ByteDance chose to exit the Indian market rather than respond to government queries, attributing the closure to “local market conditions.” Users were offered refunds for remaining subscription fees. Resso’s exit marked the end of ByteDance’s last major consumer-facing product in India after previous bans on TikTok and other apps.
Learnings to Be Avoided by New Startups:
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Prioritize Regulatory Compliance: Especially in sensitive sectors like data and media, ensure full compliance with local laws and be proactive in addressing government concerns.
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Diversify Market Risk: Avoid overreliance on a single market, especially one with a volatile regulatory environment.
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Build Transparent Data Practices: Clearly communicate and document how user data is managed to build trust with regulators and users.
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Prepare for Geopolitical Risks: International startups must be ready for sudden policy changes and have contingency plans for market exits.
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Monetization Alone Isn’t Enough: Even with a large user base and premium offerings, regulatory hurdles can override business fundamentals.
Summary Table
| Aspect |
Details |
| Startup Name |
Resso (India) |
| Founded |
2020 |
| Closed On |
January 31, 2024 |
| Business Model |
Premium music streaming app (subscription-based, formerly freemium) |
| Reason for Closure |
Government crackdown, regulatory scrutiny over data handling, removal from app stores |
| Key Learnings |
Ensure regulatory compliance, diversify market risk, transparent data practices, plan for geopolitics |
Resso’s shutdown in India highlights the critical importance of regulatory alignment and risk management for digital platforms operating in sensitive and fast-changing markets.
- https://economictimes.com/tech/technology/tiktok-parent-bytedance-to-shut-resso-app-in-india/articleshow/106738672.cms
- https://musically.com/2024/01/11/bytedance-shuts-resso-in-india-after-government-crackdown/
- https://www.businessinsider.com/india-bans-resso-tiktok-bytedance-music-streaming-service-major-market-2024-1
- https://techcrunch.com/2024/01/11/bytedance-is-shutting-down-its-music-streaming-service-resso-in-india/
- https://timesofindia.indiatimes.com/gadgets-news/tiktok-parents-music-streaming-app-exits-india-market-after-this-demand-from-the-indian-government/articleshow/106847849.cms
- https://inc42.com/buzz/bytedance-to-shut-down-resso-in-india-by-jan-end/
- https://www.digitalmusicnews.com/2024/01/11/resso-india-shutdown-announcement/
- https://www.medianama.com/2024/01/223-bytedance-shut-down-music-service-resso-india/
- https://www.billboard.com/business/streaming/bytedance-shuts-down-resso-music-streaming-service-india-1235580540/
- https://www.abplive.com/technology/tiktok-parent-company-bytedance-to-shut-down-resso-in-india-after-31-january-2583582
by Shahu Pawar | Jul 24, 2025 | aSAFAL
Startup Name: Muvin
Founded: 2021
Closed On: February 2024
Business Model:
Muvin was a youth-focused neo-banking platform that provided prepaid cards and a mobile app for teens and young adults. Its services included digital payments, financial literacy tools, and UPI-based transactions, aiming to help young users manage money and build financial skills. The platform partnered with LivQuik as its prepaid payment instrument (PPI) issuer and relied on co-branded UPI services to enable seamless digital payments.
Reason for Closure:
Muvin shut down after the Reserve Bank of India (RBI) issued a directive in June 2023 prohibiting UPI usage in co-branding arrangements for PPI issuers who did not hold a PPI license directly. As Muvin did not possess its own PPI license, it was forced to discontinue UPI services, which were central to its business model. The loss of this core functionality made the platform unviable, leading to the closure of its card program and migration of user balances to LivQuik.
Learnings to Be Avoided by New Startups:
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Prioritize Regulatory Compliance: Ensure your business model aligns with current and anticipated regulatory requirements, especially in fintech where regulations can change rapidly.
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Reduce Dependency on Third-Party Licenses: Building a business model on another entity’s license or regulatory status exposes you to significant risks if rules change.
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Diversify Core Offerings: Relying heavily on a single product or feature (like UPI payments) can be fatal if that feature is disrupted.
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Monitor Regulatory Environment Proactively: Stay ahead of regulatory trends and maintain open channels with regulators to anticipate and adapt to changes.
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Plan for Business Continuity: Develop contingency plans for critical dependencies to ensure operational resilience.
Summary Table
| Aspect |
Details |
| Startup Name |
Muvin |
| Founded |
2021 |
| Closed On |
February 2024 |
| Business Model |
Neo-banking for youth: prepaid cards, UPI payments, financial literacy via mobile app |
| Reason for Closure |
RBI directive banning UPI in co-branding for non-license holders; loss of core business model |
| Key Learnings |
Ensure regulatory compliance, reduce dependency on partners’ licenses, diversify offerings |
Muvin’s shutdown highlights the critical importance of regulatory foresight and business model resilience in the rapidly evolving fintech space.
by Shahu Pawar | Jul 20, 2025 | aSAFAL
Startup Name: Toplyne
Founded: 2021
Closed On: October 2024
Business Model:
Toplyne was a SaaS platform designed to help product-led growth (PLG) businesses convert freemium users into paying customers. Its AI-powered solution integrated with popular CRMs (like Salesforce and Hubspot) and product analytics tools to analyze user data and automate targeted outreach—such as ads, in-app nudges, and emails—to drive conversions. The company served high-profile clients including Canva, Grafana, BrowserStack, and Gather.Town, and managed data for over 25 million users.
Reason for Closure:
Toplyne shut down after nearly 3.5 years due to inability to achieve product–market fit and scale. Despite raising approximately $17.5 million from investors such as Tiger Global and Peak XV, and building a team of 30, the startup could not reach the growth trajectory required for a sustainable SaaS business. Internal challenges, including the departure of co-founder Rohit Khanna, also contributed to the decision to wind down. The founders chose to return remaining capital to investors and focus on supporting their team through the transition.
Learnings to Be Avoided by New Startups:
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Achieving Product–Market Fit Is Critical: Even with strong technology and notable clients, lack of deep market fit will hinder growth and sustainability.
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Scale Requires More Than Funding: Significant capital does not guarantee the ability to scale if the core value proposition does not resonate widely enough.
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Team Alignment Matters: Internal disagreements and leadership changes can destabilize a startup, especially in critical growth phases.
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Continuous Customer Feedback: Regularly validate product direction and value with paying customers, not just free users.
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Support During Transition: Responsible wind-down includes supporting employees and customers for a smooth transition.
Summary Table
| Aspect |
Details |
| Startup Name |
Toplyne |
| Founded |
2021 |
| Closed On |
October 2024 |
| Business Model |
SaaS for converting freemium to paid users; AI-driven sales automation for PLG businesses |
| Reason for Closure |
Inability to achieve product–market fit and scale; internal leadership changes |
| Key Learnings |
Validate product–market fit, don’t rely solely on funding, ensure team alignment, seek feedback |
Toplyne’s journey highlights that even with strong funding, technology, and marquee clients, true product–market fit and scalable growth are essential for long-term SaaS success.
by Shahu Pawar | Jul 13, 2025 | aSAFAL
Startup Name: Stoa
Founded: October 2020
Closed On: November 2024
Business Model:
Stoa operated as an online MBA boot camp, offering a six-month, part-time alternative to traditional MBAs. The program focused on startup-centric business education, covering strategy, general management, branding, economics, and analytical thinking. Priced at around ₹2.5 lakh, Stoa positioned itself as an affordable, community-driven upskilling solution for ambitious professionals, particularly those interested in the startup ecosystem. The company built a strong alumni network and delivered its curriculum entirely online, leveraging live-learning formats.
Reason for Closure:
Stoa shut down after four years due to a decline in demand for online live-learning programs post-pandemic, as consumer preferences shifted back toward offline, in-person education. The founders made a deliberate decision not to expand into offline offerings, citing unfavorable economics and a desire to stay true to their original mission of accessible online education. As a result, Stoa struggled to sustain growth and revenue in a changing edtech landscape, leading to the difficult decision to wind down operations.
Learnings to Be Avoided by New Startups:
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Adapt to Changing Consumer Preferences: The post-pandemic world saw a significant drop in demand for online-only education. Startups must remain agile and willing to pivot or hybridize their delivery models as market expectations evolve..
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Balance Mission with Market Realities: While staying true to your founding vision is important, rigid adherence can limit growth if market conditions shift. Evaluate when to adapt your model to ensure sustainability.
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Consider Offline or Hybrid Expansion: For education brands, especially in upskilling and professional development, offline or blended approaches may be necessary to meet learner expectations and drive engagement.
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Monitor Sector Trends Closely: The edtech sector is highly sensitive to macroeconomic and societal shifts. Stay attuned to trends and competitor moves to anticipate challenges.
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Build for Longevity: Education brands are expected to endure. Plan for long-term viability, including diversified offerings and revenue streams.
Summary Table
| Aspect |
Details |
| Startup Name |
Stoa |
| Founded |
October 2020 |
| Closed On |
November 2024 |
| Business Model |
Online MBA boot camp (six-month, part-time, startup-focused, community-driven, live-learning) |
| Reason for Closure |
Decline in online learning demand, refusal to go offline, unsustainable economics in changing market |
| Key Learnings |
Adapt to market, consider hybrid models, balance vision with reality, monitor trends, plan for longevity |
Stoa’s journey underscores the importance of adaptability and market awareness, especially in rapidly evolving sectors like edtech.
by Shahu Pawar | Jul 6, 2025 | aSAFAL
Startup Name: Koo
Founded: March 2020
Closed On: July 2024
Business Model:
Koo was a microblogging social media platform designed as an Indian alternative to X (formerly Twitter). It enabled users to express themselves in multiple Indian languages and later expanded to other markets, including Brazil. The platform monetized primarily through venture funding, with hopes of scaling user engagement and eventually introducing revenue streams such as advertising and partnerships.
Reason for Closure:
Koo shut down after failing to secure acquisition or merger deals, most notably with DailyHunt, and being unable to attract additional long-term capital despite raising over $66 million from prominent investors and reaching a valuation of $275 million. The platform struggled with:
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Inability to monetize effectively and generate profits at scale.
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High operational and technology costs associated with running a large social media service.
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Failed acquisition talks with larger internet companies, conglomerates, and media houses, many of whom were wary of the unpredictable nature of user-generated content and the risks of the social media sector.
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Funding winter and market mood, which made it difficult to raise new capital.
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Rapidly shifting priorities among potential partners, even at advanced stages of negotiation.
Learnings to Be Avoided by New Startups:
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Monetization Must Be a Priority: Relying on user growth and venture funding without a clear, scalable revenue model is unsustainable, especially in capital-intensive sectors like social media.
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Diversify Funding and Partnership Options: Do not depend solely on acquisition or merger as an exit or survival strategy; build resilience into your business plan.
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Understand the Risks of User-Generated Content: Platforms dealing with large-scale public content face unique challenges, including moderation, compliance, and reputational risks that can deter investors and partners.
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Prepare for Long-Term Capital Needs: Competing with global giants requires patient, strategic capital and a realistic timeline for profitability.
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Adapt Quickly to Market and Investor Sentiment: Be prepared for shifts in funding climate and partner priorities; maintain flexibility in strategy and operations.
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Transparent Crisis Management: Handle shutdowns and operational crises with clear communication to employees and stakeholders to protect reputation and morale.
Summary Table
| Aspect |
Details |
| Startup Name |
Koo |
| Founded |
March 2020 |
| Closed On |
July 2024 |
| Business Model |
Multilingual microblogging platform; aimed to monetize via scale, ads, and partnerships |
| Reason for Closure |
Failed acquisitions, inability to monetize, high costs, funding winter, partner/investor reluctance |
| Key Learnings |
Prioritize monetization, diversify funding, understand sector risks, plan for long-term capital |
Koo’s trajectory illustrates the immense challenges of building and sustaining a social media platform in the face of global competition, high operating costs, and the need for both patient capital and effective monetization
by Team Agrisnip | Jul 6, 2025 | aSAFAL
Startup Name: Plenty Unlimited (USA)
—a high-profile vertical farming startup backed by Jeff Bezos, Eric Schmidt, and SoftBank—filed for Chapter 11 bankruptcy on March 23, 2025, after running out of capital, halting operations at its Compton site, and laying off staff. The company cited challenging market dynamics and fundraising difficulties as key reasons for the filing, which followed years of ambitious expansion and nearly $1 billion in venture funding.
Key Points:
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Bankruptcy Filing: Plenty filed voluntary petitions under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas, aiming to restructure liabilities, streamline operations, and focus its future business.
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Operational Changes:
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Operations at the Compton, California facility were halted.
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The company continued to operate its Richmond, Virginia vertical strawberry farm and its Laramie, Wyoming plant science R&D facility throughout the restructuring.
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Financing: Plenty secured $20.7 million in debtor-in-possession (DIP) financing to maintain operations during the bankruptcy process.
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Restructuring Outcome:
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By May 29, 2025, Plenty successfully emerged from Chapter 11 after the court confirmed its reorganization plan.
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The company is now laser-focused on premium strawberry production at its Richmond, Virginia farm, resuming construction and expanding growing capacity.
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The restructuring resolved outstanding creditor claims and provided new capital to support ongoing operations.
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Strategic Shift: The company’s new strategy centers on scaling vertical strawberry farming and pursuing farm sales leveraging its proprietary technology, rather than broad-based leafy greens or multi-crop vertical farming.
Summary Table
| Aspect |
Details |
| Company Name |
Plenty Unlimited (USA) |
| Founded |
2014 |
| Chapter 11 Filing |
March 23, 2025 |
| Reason |
Ran out of capital, market/fundraising challenges, halted Compton ops, layoffs |
| DIP Financing |
$20.7 million secured to support operations during restructuring |
| Current Focus |
Premium strawberry production in Richmond, VA; R&D in Laramie, WY |
| Emerged from Ch. 11 |
May 29, 2025 |
| Key Backers |
Jeff Bezos, Eric Schmidt, SoftBank |
Plenty’s case highlights both the promise and the financial volatility of vertical farming, as even the most well-funded pioneers face major challenges in scaling and sustaining capital-intensive agtech ventures in a tough funding environment.
- https://www.prnewswire.com/news-releases/plenty-undertakes-restructuring-process-to-support-focus-on-premium-strawberry-market-302408630.html
- https://cases.stretto.com/plentyunlimited/
- https://www.plenty.ag/plenty-completes-restructuring-emerges-from-chapter-11/
- https://www.sidley.com/en/newslanding/newsannouncements/2025/03/sidley-represents-plenty-unlimited-in-chapter-11-filing
- https://www.plenty.ag/plenty-undertakes-restructuring-process-to-support-focus-on-premium-strawberry-market/
- https://www.freshplaza.com/north-america/article/9717222/from-billion-dollar-backing-to-bankruptcy-plenty-restructures-for-a-leaner-focused-future/
- https://www.hortidaily.com/article/9737466/this-emergence-is-the-start-of-a-new-focused-era-for-plenty/
- https://techcrunch.com/2025/03/24/vertical-farming-company-plenty-files-for-bankruptcy-after-raising-nearly-1b/
- https://www.verticalfarmdaily.com/article/9737467/this-emergence-is-the-start-of-a-new-focused-era-for-plenty/
- https://www.bloomberg.com/news/articles/2025-03-24/bezos-softbank-backed-vertical-farmer-plenty-files-bankruptcy
