Failure StoriesStartups

(Failure Story -2) How Townrush lost its rush?


We learn from failure, not from success.

-Bram Stoker

Learning from our own mistakes is the best way to learn something. Even it would be better if you try to learn from other’s mistakes too. Because from other’s mistake, you will learn and be careful not to do the same mistake again. Thus, it’s important to talk about the failures as it makes the environment more real.

The year 2013 was a year of umpteen startups which were entering the market. And 2015 was the year of consolidation, exits, and shutdowns.

During that era, the founders of Townrush recognized an opportunity in hyperlocal supply chain and came up with an idea to create an on-demand delivery platform that enables anyone to get local goods delivered in a city within hours.

Townrush which was founded in May 2015 by former Flipkart executives and Facebook executives, initially raised an undisclosed amount in a seed round from Lightspeed venture partners. But soon after launching, it shut down due to failing to raise funds.

The problem was with the situation when it fired 30 employees and failed to pay salary to them. At that time, even the company didn’t have any funds to pay salaries to their employees for 3 months.

Also, Townrush was getting a tough competition too from other local logistic startups like Bangalore based Roadrunnr, Parceled and Mumbai based Grab. Grofers which was raised in $165 million funding, later bought Townrush to augment its business.

Some Key lessons to learn:

  • Manage funds: Maximum startups fail due to the shortage of funds. Initially, startups spend a lot of money on marketing, hiring, product developing and then later get run out of funds to maintain the running cost of startup. Here also Townrush got stuck with the problem of funds to run their setup.


  • Keep changing the track: Many startups stick with the same idea, same product in spite of not getting the positive response. Remember this “Love Startups not ideas”. Things change with time since it’s nature’s rule, so why sticking with the same idea? Even YouTube was launched as dating website but later it got changed to a video sharing platform after looking at the responses. Here also Townrush should have to divert their business on some other track after getting negative responses.


  • Compete with comparable: If your competitor is comparable to you in the business then it’s okay to compete with them. But if your business is just in a budding stage then don’t go into direct competition with the big players as chances of failure would be high.
    Don’t reduce the prices of your product for the sake of beating your competitor who is bigger than you. You will ruin yourself. As the proverb defines “Big fish eats small fish.

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Mr Ideat

Mr Ideat

Mr Ideat is the Chief-Editor and Content Manager of He is startup enthusiast, sarcastic by nature. Well known by a nickname idiot since he is good for nothing according to people.

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