While the year 2017 has been the birth year of many great innovative startup companies, at the same time, the tech companies that once ruled the world have undergone liquidation due to various reasons and finally seen the exit door. Irrespective of how big the company is or what kind of innovation it does, there is always a possibility of bankruptcy. After all, people are driving the business and of course technology and innovation are two of its main building blocks.
Here are some of the top 10 companies that have seen departure in 2017 exclusively for you.
- Beepi: An online giant who created market for leasing, selling and buying cars founded in April 2013. The company designed transactions in such a way that both selling and buying could easily happen through smart phone alone. It was a privately held car dealer company that failed to raise money from its stakeholders, finally shutting it down in February 2017. During peak business operations it was valued at $550 million
- Jawbone: A consumer wearable products manufacturing billion dollar company, Jawbone was founded in December 1999. It developed products ranging from wristbands to Bluetooth headphones. Due to stiff competition from other healthcare hardware companies like Fitbit and Flextronics, Jawbone failed to get investors and gone liquidation.
- Hello: The brain behind building a most innovative sense sleep ball that improves sleep behavior of a human by monitoring bedroom has failed to get a buyer and shut down its business in June 2017. It was started with a capital of $40 million in 2012 and expanded its market value to $300 million.
- Tolexo: Once considered as best online marketplace to buy safety equipment and industrial goods was funded by Bennett Coleman & Company and Intel. Flagging in sales is considered as one of the main reasons to close both of its B2B wholesale and B2B retail businesses.
- Quixey: A Mountain view based mobile search engine company that helps to search various apps for mobiles was once valued at $ 600 million. The “Functional search” app gathers app information from various social media, blogs and review sites. It potentially eliminated people to do multiple searches on multiple mobiles for unique applications. Its failed revenue growth held reason for its closure this year.
- Sprig: It is a food delivery service company that started its operations in 2013.It was always known to deliver on demand high quality meals. Its’ failed business model to sustain and scale up to the demand of delivery and production lead to its ouster from business in May 2017. Sprig failed to compete with even lower budget opponents like seamless.
- StayZilla: An online hotel booking company that mainly worked on aggregator model was started its business operations back in 2005 in Bangalore. Increasing costs, inability to broaden the local market are the main reasons for its closure. It was once valued at $33.5 million announced closure on February 2017. Industry experts say that a bunch of legal troubles also played a pivotal role in companies’ exit.
- Yik Yak: A tech company that built social media application on both android and iOS platforms for people to discuss about trends and creating discussion threads. It mostly known for college scandals and harassment discussions which finally led to its shut down. It failed to contain users on its social platform finally publicized its closing on April 2017. During its startup days it raised funds ranging from $75 to $80 million and was once valued at $400 million. Square, a payments company acquired Yik Yak in last minute deal for a worthy $3 million.
- Maple: Maple once considered as a food darling of many has closed its operations May, this year. It is a New York based food delivery company that served millions of happy customers also offered free sugar cookie with its every meal. Its unique price model included both delivery and tips charges. After Maple close its services, most of the staff moved to a UK based food platform Deliveroo
- Cardback: The 2012 founded Indian based rewards finder platform for many loyalty debit and credit card holders has closed its services on June 2017. Decline in demand for multiple credit cards is found to be one of the main reasons for its exit. In its journey spanning five years it had found investors betting more than $10 million on its services.
Though some top companies from all sectors stops providing its service due to various financial, marketing and management failures, many other companies are in the pipeline to be ousted by the end of last quarter 2017 or may be by 1st quarter of 2018. Most of the companies in the list are retailers. Big retailers like Gymboree, JCPenny, The Limited are in the firing zone and they already started closing their outlets across the globe and many employees are in trouble of losing their jobs.
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