Accel Partners-backed B2B SaaS startup OSlash shuts down operation

OSlash is shutting down due to a lack of product-market fit, it wrote on LinkedIn.

Business-to-Business (B2B) software-as-a-service (SaaS) platform OSlash on November 8 announced that the firm is sunsetting its operations after running for three years.

"After a three-year journey, we’re wrapping up operations at OSlash. As a token of our gratitude for your love, we’re making OSlash shortcuts open-source and free forever," the company wrote on its website.

The company is shutting down due to a lack of product-market fit, it wrote on LinkedIn.

"After 3 years of dedicated efforts to build a successful product, we have made the tough decision to sunset OSlash due to lack of product-market fit," the firm said, adding that "While painful, sunsetting OSlash will allow us to return capital to our investors with dignity and humility".

Founded in 2020 by Ankit Pansari and Shoaib Khan, OSlash raised $5 million in a bridge round from more than 40 investors and founders including Kunal Shah, CEO of Cred, Christian Oestlien, VP Product, YouTube, Akshay Kothari, COO of Notion, and Cristina Cordova Partner, First Round.

In 2021, OSlash raised around $2.5 million from Accel Partners and other angel investors. OSlash provides plug-and-play AI copilots for any software products. The company had a presence in the US and the UK.

This comes at a time when investors are betting big on Artificial Intelligence SaaS startups. Several top VC firms have also announced that their focus areas will be on generative AI.

Recently software-as-a-Service (SaaS) accelerator fund Upekkha announced that it will focus on and invest in startups that are developing innovative generative AI software applications, betting big on the segment.

In fact, the number of Indian GenAI-based SaaS startups has more than doubled since 2021, raising $590 million in funding as of May 2023, according to a report by SaaSBoomi and McKinsey released on July 27.