Great ideas. Not-so-great execution. What’s going wrong with Indian start-ups?

  • ~90% of start-ups fail due to lack of innovation (Forbes, 2016)*
  • 1503 Indian start-ups have shut down since 2015 (MoneyControl and Forbes)
  • ~90% of Indian start-ups fail within the first 5 years (Forbes and News18)
  • ~60% of Indian start-ups fail because of disagreement among founders (YourStory)


The Indian start-up space is promising. Not long-lasting.


India has an ocean of talent and innovation. There is a plethora of excellent start-up ideas but within a few months or a couple of years, they fail. Something goes wrong in the execution. 

Why has this been happening? Why is it that despite mind-blowing ideas, many start-ups in our country fail to get things going? Let’s look at the bigger reasons below.

Reason 1: No funding

We have seen an astounding number of founders give up on their ventures because of the lack of funds. The inability to raise an investment eventually causes their downfall. This problem is especially rampant in supply chain and logistics industries. 

Reason 2: Rushed scaling-up

Scaling-up is important, yes. But rushing into it can be damaging. The reason why this blows out of proportion is that many start-ups don’t realize that they are doing something wrong until the very end. Premature hiring, hiring the wrong people, implementation problems, and other HR management issues result in poor scaling-up strategies. 

Reason 3: Inadequate research and understanding

The key to success for any start-up company is a thorough understanding of the market. Research helps understand opportunities, gaps and challenges, which are crucial for any start-up’s success. This information can help devise a successful marketing strategy. Sadly though, in their haste to take-off, many start-ups ignore this and trust their guesswork instead. 

Reason 4: A below-par business model 

This is a result of lack of focus. Start-ups end up spending too much time on providing solutions and end up neglecting the price model, resource allocation, value, etc. This impacts the business model, which in turn results in failure. 

All this and more creates discord among founders. It pressurizes them and leads to a lot of negativity. Founders who fail to persevere, call it quits. 

But it’s not all gloomy!

There’s good news too!

Yes – Indian start-ups are facing multiple challenges when it comes to execution. Given this, there is a lot of potential for holistic enablers in India, if done right. Critical success factors are selection process and criteria of startups, management expertise and orientation towards measurable outcomes like scalability and speed to markets. 

How does Turbostart help?

Turbostart is a national, sector-agnostic start-up programme that helps selected start-ups with a host of benefits such as:

  • Product validation
  • HR management
  • Branding and strategy 
  • Business modelling
  • Capital structure
  • Legal services
  • Entity structuring
  • Tax planning
  • Accounting
  • Compliance services
  • Up to INR 2 crore funding
  • And a whole lot more

Applications to the programme are open until 30 November 2019. We invite all start-ups to submit their applications for review. Ten winning start-ups will enjoy the aforementioned perks along with many other benefits. For more details, please visit: