In India, its not just startups facing the hard times as in a recent unfortunate instance a Hong Kong-based tech startup accelerator Jaarvis is shutting down its India operations and is also in the process of writing off investments in its portfolio, reported Economic Times.
Launched in 2015 in India and operating from Gurgaon, Jaarvis Accelerator takes early stage technology based startups and helps them rapidly build a sustainable business. It used to have 4-months residence accelerator program and at the end of each four-month program, all Incubatees will be invited for a “Pitch Night” where they were given an opportunity to showcase their product/business to institutional investors and attract further funding.
Till date, Jaarvis accelerated nearly 13-14 startups in the space of Internet of Things, robotics, online-to-offline, fintech, mobility, and other emerging technologies. As part of its accelerator programme, selected startups got access to office space, mentors, prospective customers in Asia Pacific and funding of up to USD50,000 in return of 10-12% stake.
Jaarvis’ portfolio companies include Arbunize, Comparometer, DesignDodo, Drinks on Me, Edurev, Psychd, R2 Robotronics, Sniffer, Spotwrks, Extra Carbon, iManageMyHotel, and PromOn.
Citing an industry expert, the Economic Times report further said that shutting down of Jaarvis is not shocking as other startup accelerator in India especially of private-label are not doing good as well.
Accelerators are shifting their business models as they find it hard to sustain operations out of revenue from the equity startups give them. This is the key finding in a new report based on a survey of 579 accelerator programs that invested $207 million into 11,305 startups in 2016. Out of this, about US$18 million went into 1,368 startups from 76 accelerator programs in the Asia Pacific region, according to an annual Gust report released in September 2017.