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Top Loss Making Startups in India you Won’t Believe

Top loss making startups in India

Even though India is among the top producers of unicorns worldwide, many of the well-renowned companies turned out to be the top loss making startups in India.

India is home to more than 100 unicorn companies or businesses valued at more than $1 billion. This year, 21 startups achieved unicorn status. Indian unicorns are currently priced collectively at $341 billion. Despite the frequent mention of a “funding winter,” these businesses have raised more than $94 billion in cash.

The fact that some of these unicorns have been suffering losses, meanwhile, paints a different picture of the startup ecosystem as a whole. It’s anticipated that a number of the top unicorns will shortly start their initial public offerings (IPOs).

Top Loss Making Startups in India


To suit their diverse needs, Zomato’s technological platform, which was introduced in 2010, links customers, restaurant partners, and delivery partners. Customers may find restaurants using the Zomato platform, read and write reviews of them, browse and submit images, order food delivery, reserve a table, and pay for their meals while dining out.

On the other side, Zomato also offers its restaurant partners sector-specific marketing tools that let them draw clients to their places while simultaneously offering a dependable and effective last-mile delivery service. Additionally, Zomato runs Hyper pure, a one-stop purchasing platform that offers restaurant partners premium foods and kitchenware.

Zomato’s loss climbed from Rs 134.2 crore last year to Rs 360 crore this year. Operations revenue increased by 75.01 percent to Rs 1,211.8 crore from Rs 692.4 crore in the prior quarter.

Losses for the given the fiscal year 2022 increased from Rs 816.4 crore to Rs 1222.5 crore. From Rs 1993.8 crore to Rs 4192.4 crore, revenue grew. Hence Zomato is among the top loss making startups in India


According to revenue for Fiscal 2021, Delhivery is the biggest and most rapidly expanding fully integrated player in India. Through the use of cutting-edge engineering and technology, world-class infrastructure, and quality logistics operations, they hope to create the operating system for commerce.

The Delhivery crew has completed more than 1 billion orders across India since its start. With over 17,000 pin codes served, they have established a national network with a presence in every state. They provide services twenty-four hours a day, seven days a week, 365 days a year thanks to 21 automated sort centers, 86 gateways, 80+ fulfillment facilities, and a staff of over 66000 individuals.

In the second quarter of the fiscal year 2022–23 (FY23), logistics behemoth Delhivery reported reducing losses to INR 254.1 Cr, down nearly 60% from INR 635 Cr in Q2 FY22.

Total revenue for the company increased by 23% to INR 1,883.3 Cr in Q2 FY23 from INR 1,528.1 Cr in the prior fiscal year. This was primarily due to the holiday season since e-commerce and gift shipments both increased significantly throughout the quarter.

OYO Rooms

OYO Rooms, established in 2013 by Ritesh Agarwal, provides businesses and entrepreneurs with access to hotels and houses along with technology services and goods that aid in income-generating and efficient operations.

Customers across the world find their accommodation services dependable and reasonably priced. Over 1 million hotels and home shops are owned and operated by users of Oyo Rooms in over 80 countries, covering India, Europe, and Southeast Asia. Oyo Rooms offers 40+ integrated goods and solutions.

The business reported a net loss of 333 crore, which is down from the 414 crores reported in the first quarter of 2022–2023. Additionally, revenues in the first half of FY23 increased by 24% annually to $2,905 crore.


Flipkart, an online retailer based in India, was established in 2007. It began by concentrating mostly on online book sales but rapidly included lifestyle items, technology, necessities for the house, and groceries. Presently, Flipkart is one of the largest Indian online marketplaces, rivaling Amazon as the global market leader.

Since 2010, the corporation has purchased numerous companies, including Letsbuy, Myntra, Jabong, eBay India, etc. In addition to its headquarters in Bengaluru, Flipkart also has operations in Delhi and Mumbai. In contrast to India, the corporation is also registered in Singapore. In 2018, a US-based retailer named Walmart acquired the majority of Flipkart’s equity.

Flipkart is one of the top loss making startups in India experiencing a huge loss of 2941 crores ($382 million). In India, Flipkart Private Limited lost more than 2941 crores in 2021–2022 compared to more than 3100 crores the year before.


India’s leading financial services company Paytm is one of the top loss making startups in India, they provide a broad range of online payment & banking solutions to consumers, online merchants, and service partners. Through payments, trade, finance, employment, and financial services, the company aspires to bring at least 500 million Indians into the global economy. Vijay Shekhar Sharma launched One97 Communications Limited, which owns the Paytm brand, in 2010. Its main office is located in Noida, Uttar Pradesh. 

The combined loss of Paytm for the fourth quarter of the fiscal year rose to Rs 762.5 crore from Rs 444.4 crore the year before. Due to a rise in the gross merchandise value processed through its payment instruments as well as an increase in loan disbursals, revenue climbed by 81 percent to Rs 1,648.4 crore from January to March. In the third quarter of fiscal 2022, the company lost Rs 778.5 crore on revenue of Rs 1,533.4 crore.


One of the biggest meal ordering and delivery apps in India. Bangalore-based Swiggy was established in July 2014. Nandan Reddy and Sriharsha Majety, both BITS Pilani graduates, launched Swiggy with the vision to revolutionize local food delivery in India. They decided to leave a lasting impression in India after spotting an unfilled gap between food ordering and delivery. The foundation of Swiggy’s business strategy is closing such a gap.

Although this concept was groundbreaking, they wanted to keep it straightforward for customers, so they came up with the idea for Swiggy, an app that allows users to order meals with only one swipe. Over 5 lakh mobile app installations later, Swiggy has come a long way from being just an idea.

In the fiscal year 2020–21, Swiggy (Bundl Technologies) recorded revenue of Rs 2,145 crore, a 23% year-over-year decline (FY21). However, regulatory data that business intelligence platform Tofler got shows that its net loss decreased 66% year over year to Rs 1,314 crore. The Bengaluru-based company’s total expenditures were Rs 3,310 crore.


One of the biggest ride-hailing firms in the world, Ola serves more than 250 cities in India, Australia, New Zealand, and the UK. Ola is also the largest mobility platform in India. To provide convenience and transparency for hundreds and millions of customers and over 1.5 million driver-partners, the Ola app connects customers to drivers and a variety of vehicles, including motorcycles, auto-rickshaws, metered taxis, and cabs.

Regulatory papers show that Ola Electric lost about Rs 200 crore in the fiscal year that ended in March 2021. During that period, the mobility company switched from establishing a battery-as-a-service business to producing electric scooters.

Due to the absence of any sales throughout the period, the company only made Rs 86 lakh in operational revenue. Nearly 70% of total expenses were made up of employee benefits.


Former Google employee Gaurav Munjal established Unacademy in 2010. The business began as a YouTube channel where Munjal posted lectures he gave on various subjects.

On the edX platform, Unacademy introduced its first online course in 2015. Since then, they have significantly increased the number of courses they provide, and they now provide more than 1000 courses in a variety of areas.

Unacademy is an online learning platform that provides both free and paid courses in a variety of areas, from school-level material to material for competitive exams. Along with that, it provides UPSC preparation, employment skills, entrepreneurship, and more.

Unacademy, an ed-tech unicorn with headquarters in Bengaluru, had its consolidated losses increase to INR 2,848 Cr in the fiscal year 2021–2022 (FY22), an 85% year–over–year (YoY) increase from INR 1,537 Cr in FY21.

However, compared to INR 398 Cr the year before, consolidated revenue from operations increased by more than 80% to INR 719 Cr in FY22.

The top loss making startups in India for 2022 serve as a warning that success isn’t always instantaneous or assured in the dynamic world of business and innovation. Nonetheless, these entrepreneurs are laying the groundwork for cutting-edge technology and upending established markets, which will result in long-term advantages for both businesses and society at large. 

It’s critical to keep in mind that failure is not the end, but rather a vital step on the road to development and achievement. These entrepreneurs still have a chance to transform their losses into victories and succeed if they maintain their resolve and are open to learning.

If you enjoyed reading this blog post and would like to read other intriguing blogs on startups, visit the Purple pennon home page to uncover more such exciting posts.


How do failing startups continue?

Startups today monetize their organization’s purpose to raise money even while they are losing money. Rather than limiting themselves to little profits, they want to grow the firm. When a company is in its loss-making phase, investors wager on its future growth prospects and vision.

How long can a business sustain a loss?

You can only deduct losses from your firm for three out of five tax years, according to the IRS. The IRS may prevent you from deducting business losses from your taxes if you can’t demonstrate that your company is beginning to turn a profit.

Are losses paid by shareholders obligatory?

Corporate shareholders are not personally responsible for the debts and other financial obligations of the firm, in contrast to owners of sole proprietorships or partnerships. As a result, if a corporation goes bankrupt, its creditors cannot pursue the personal assets of a shareholder.

What issue does the majority of businesses face?

Bad leadership, poor planning, failing to differentiate a product or service from those already on the market, disregarding client demands, and failing to learn from mistakes are all common issues with startups. A startup may experience issues due to a lack of funding, bad locations, and premature scaling.

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