Eatlo Shuts Down Operations Without An Explanation

Eatlo, the Bengaluru-based startup, has closed down its operations. The company, which launched in November 2014, sourced food from home chefs and delivered in areas in and around Bangalore. The company reportedly employed around 100 people and claimed to have delivered around 1200 orders per day.  

The food-delivery platform stopped accepting orders on December 15th even after raising Rs. 6 crore in two rounds of funding backed by Powai Lake Ventures, Abhishek Goyal, co-founder of start-up tracker Tracxn, and Haresh Chawla, partner at India Value Fund Advisors. The employees of Eatlo were left baffled by the decision and according to some a proper explanation was not given for ceasing operations within one year of launch.

Co-Founder of Eatlo, Rahul Harkisanka declined to comment on the current situation but left open the possibility of re-launching the operations soons. “We have temporarily stopped operations and revaluating things. We are trying to figure out the next step. It is just that we are taking a break and revaluating. It is confidential as to what we are doing,” said Harkisanka. 

It has become uncommon recently for newly launched food-tech platforms to shut down or merge with one of the big players in the market. The food-tech sector has been on a downward spiral with companies like Spoonjoy and Dazo, even with the support of major investors, had to scale back operations and merge with well-funded companies or completely shut shop, as in the case with Dazo. 

The food-tech market is crowded with start-ups offering the same or similar services just to cash in on the start-up boom in India. Too many companies are targeting a particular segment prompting investors to step back and cut down on investments until someone proves to be a winner. Harminder Sahni, founder at Wazir Advisors, a consultancy firm said, “The sector has become so chaotic that you cannot blame investors for being cautious. There are too many people starting similar things. Many entrepreneurs are quick to shut one venture and start something else tomorrow. Since everybody is dragged into a race, people know 100 people will throw their hat in the ring and five will survive.”