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Last Updated : May 24, 2016 05:23 PM IST | Source: CNBC-TV18

Indian startups under pressure to cut cash burn, eke out profit

Food ordering service Tinyowl is a prime example of both consolidation and a ramp-down. This heavily-funded venture has stopped operations in Bengaluru, Pune and Hyderabad. So the only city it is now operational in is Mumbai.

The quest for profitability is forcing change across start-up India - some big, some small. In CNBC-TV18’s special show Young Turks Dealtracker, gets the details’ of the transformations that is underway.

Apple may have announced the formation of a design and development accelerator in Bangaluru, but that does not mean everything is hunky dory in the country's start-up space. Investors are asking tough questions of founders, and the ability to manage cash burn or the lack thereof, is reflecting on the ground in the form of consolidation, ramp downs and even changes to the top management.

Food ordering service Tinyowl is a prime example of both consolidation and a ramp-down. This heavily-funded venture has stopped operations in Bengaluru, Pune and Hyderabad. So the only city it is now operational in is Mumbai.

Now a message on the Tinyowl app says it will return with a better product in the near future. However, this is expected to happen only when Tinyowl's merger with on-demand logistics start-up Roadrunnr is finalised.

It is also understood that after the merger, which was initiated by common investor nexus venture partners, services are likely to resume under the Rrunnr brand, and not Tinyowl.

Speaking of changes, Flipkart is feeling the heat with investors slashing the company's valuations. So, in a bid to improve the seller ecosystem in its core marketplace business, the company has gone on for more changes at the top management level.

Chief Marketing Officer Samardeep Subandh has taken over as head of categories, Ajay Veer Yadav, the former COO of the mobile store has come on board as Vice President of the mobiles category and Anil Goteti, who has been heading the mobile category, will now head the marketplace platform. All this, even as Sharat Singh, the Vice President of engineering, quit to join Adobe in a similar role

The company believes these new appointees will help streamline its business and stave off competition from American rival Amazon, which is nipping at its heels.

Not everyone in the startup universe is being asked some tough questions, Sports-focused digital broadcast network Veqta has raised USD 500,000 in seed funding from early stage venture capital firm Chatsworth management, and sports Management Company ITW consulting.

Veqta will use these funds to ramp up capabilities to launch an over-the-top service in a few weeks, which will provide sports content from across the globe through video-on-demand and live streaming.
First Published on May 23, 2016 10:24 pm
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