Introduction
The pursuit of breakthroughs and growth in India’s vibrant entrepreneurial environment is sometimes fraught with dangers and difficulties. As we explore the world of business ownership, it grows clear that not all business endeavors are successful in achieving financial success. In 2024, despite an environment full of bright new ventures, a group of businesses had difficulties with finance, underscoring the unpredictability that characterizes the corporate world.
Zomato is one of the well-known companies on this list of the top 10 loss-making businesses in India since it is a major force in the meal delivery sector. Zomato’s financial success has been tarnished by constant declines notwithstanding its broad appeal and substantial market share, which is indicative of the intense rivalry and complicated operating dynamics that characterize the industry.
In a similar vein, Flipkart, a trailblazing entity in the field of online shopping, has suffered significant setbacks in its attempts to hold onto market leadership and continue pursuing aggressive growth plans. Pioneering in the electronic payment space, Paytm is facing financial difficulties in a highly competitive market characterized by quickening technology progress and shifting consumer tastes.
Notwithstanding its unusual approach to customer accumulation, Urban business, previously known as UrbanClap, faces difficulties with sustainability in the face of growing rivalry and complex operating requirements. Freshworks, an up-and-coming company in the SaaS, or software as a service, space, has challenges on its path to sustainability, even with its extensive product line and ambitions to expand internationally. The fintech company CRED is losing money while pursuing its grand goals of revolutionizing credit card processing and loyalty schemes.
A leading participant in the internet healthcare aggregating market, PolicyBazaar negotiates financial instability in the face of regulatory uncertainty and fierce competition. The leading player in India’s taxi services sector, OLA, faces deficits while attempting to push boundaries and broaden its product line in the face of shifting regulations and changing market conditions.
Verse, a rising force in the online loan market, is facing financial difficulties in the face of heightened competition and government scrutiny. Last but not least, Dream11, a pioneer in the gambling space, is confronted with economic issues in an environment of changing market conditions and legal uncertainty.
This list of the top 10 losing businesses in India in 2024 serves as an excellent example of the risks and unknowns that come with being a businessperson and highlights the importance of resiliency, flexibility, and creative thinking in negotiating the cutthroat business environment.
The top 10 Loss-Making Startups in India in the Year 2024 are:
| Rank | Loss Making Startups | Sector | Founded |
| 1 | Zomato | Food Delivery | 2010 |
| 2 | Flipkart | E-commerce | 2007 |
| 3 | Paytm | Digital Payments | 2010 |
| 4 | Urban Company | Beauty & Wellness Services | 2014 |
| 5 | Freshworks | Customer Relationship Managemen t (CRM) Software | 2010 |
| 6 | CRED | Credit Card Reward Managemen t Platform | 2018 |
| 7 | PolicyBazaar | Insurance Aggregator | 2008 |
| 8 | OLA | Electric Vehicle & Ride-hailing | 2010 |
| 9 | Verse | Social Commerce Platform | 2018 |
| 10 | Dream11 | Fantasy Sports Platform | 2008 |
Zomato
• 2024 brought Zomato financial difficulties as a result of heightened competition and elevated delivery expenses.
• Revenue was pressured by increasing expenditures and fierce competition from Swiggy.
• Operating expenses increased more quickly than sales rose, even with the spike in interest for meals delivered.
• To reduce expenses, Zomato investigated new income opportunities and instituted measures to reduce costs.
• In order to become profitable again later on, the firm concentrated on increasing customer happiness and effectiveness.
| Valuation (USD Billion) | 7.8 |
| Funding (USD Billion) | ~4.2 |
Flipkart
• One of the biggest internet retailers in India, Flipkart, suffered large losses in 2024.
• Rivals such as Amazon posed fierce rivalry, which increased the financial strain.
• Increasing transportation costs made a profit even more difficult to achieve.
• Margin margins were undermined by excessive operating costs, even in a year of robust sales.
• The business tried to reduce costs, but it had trouble keeping costs and revenues equal.
• In the face of fierce competition in the marketplace, Flipkart attempted to create novel products and simplify processes to recover financial stability.
| Valuation (USD Billion) | 31.9 |
| Funding (USD Billion) | ~38.1 |
Paytm
• Due to legislative changes and severe rivalry in the online payment market, Paytm experienced huge losses in 2024.
• These difficulties reduced Paytm’s sources of income and raised its marketing costs.
• In the face of shifting market conditions, the firm found it difficult to stay profitable despite having a large customer base.
• Paytm is investigating ways to reduce losses, such as streamlining costs and broadening its service offerings, in order to eventually restore its liquidity.
| Valuation (USD Billion) | 16 |
| Funding (USD Billion) | ~4.0 |
Urban Company
• Urban Company’s operating difficulties and excessive marketing costs resulted in severe losses in 2024.
• The corporation found it difficult to strike a balance between cost-cutting initiatives and its goals for expansion.
• The financial viability of the residential services sector was further harmed by greater rivalry.
• The fiscal health of Urban Company continued to be difficult even with attempts to reduce processes.
• To make up for its losses, it sought to investigate new sources of income and impose strict reductions in expenses.
| Valuation (USD Billion) | 2.3 |
| Funding (USD Billion) | ~1.2 |
Freshworks
• Renowned software-as-a-service (SaaS) provider Freshworks experienced losses in 2024 as a result of its ambitious expansion plans.
• Rising advertising and operating expenditures exceeded development even with increasing earnings.
• The economic downturn was further exacerbated by expenditures made on studies and development in order to increase the range of products offered.
• By concentrating on high-margin products and minimizing costs, the firm hopes to overcome these obstacles.
• The two most important tactics for regaining revenue in the years to come are developing strategic alliances and improving client retention.
| Valuation (USD Billion) | ~13 |
| Funding (USD Billion) | ~1.0 |
CRED
• Prominent credit card repayment website CRED experienced large losses in 2024.
• Financial hardship resulted from high customer incentives and purchase expenses.
• Earnings were also hampered by the fierce rivalry in the finance industry.
• Even with a sizable user base, income creation lagged behind costs.
• The declines were further exacerbated by modifications to banking sector rules.
• To tackle the monetary issues, CRED is investigating fresh sources of income and cost-cutting strategies.
| Valuation (USD Billion) | 6.4 |
| Funding (USD Billion) | ~428 Million |
PolicyBazaar
• In 2024, PolicyBazaar had financial difficulties as a result of rising marketing costs and legal hurdles.
• Growing expenses related to acquiring new customers have an effect on the business’s revenue.
• PolicyBazaar’s operations become more difficult and costly as a result of alterations in insurance industry regulations.
• Although having a significant competitor, PolicyBazaar has trouble turning increased revenue into profits.
• In an effort to reduce deficits and restore liquidity, the firm is investigating cost optimization techniques and diversifying options.
| Valuation (USD Billion) | 1.5 |
| Funding (USD Billion) | ~825 Million |
OLA
• OLA suffered large losses in 2024 as a result of its ambitious expansion plans and large expenditures in new technology.
• The fierce rivalry it faced from competitors like Uber also played a role in its economic decline.
• Even after expanding into more locations and broadening its offerings, OLA was unable to make a profit.
• Through the implementation of reduction initiatives and the exploration of strategic alliances for long-term success, the firm sought to limit losses.
| Valuation (USD Billion) | ~7.0 |
| Funding (USD Billion) | ~4.0 |
Verse
• In 2024, Verse, a finance firm, suffered large losses.
• Verse suffered despite its early popularity because its marketing costs kept going up.
• The fierce rivalry in the electronic payment industry made financial difficulties worse.
• The business’s cash reserves were stretched by its ambitious development goals.
• Verse’s financial troubles worsened as operating costs increased and legal obstacles grew.
• Verse is reassessing its cost control and expansion strategy in order to offset losses.
| Valuation (USD Billion) | 1.0 |
| Funding (USD Billion) | ~85 Million |
Dream11
• Dream11 had economic losses in 2024 as a result of costly marketing campaigns and legal issues.
• Regulations affected its sources of income, which affected competitiveness.
• In the face of legal uncertainty, the firm fought to stay profitable, notwithstanding its renown.
• The economic downturn of Dream11 brings to light the difficulties of working in a highly scrutinized industry.
• The business may need to review its advertising strategies in order to reduce losses and look into new sources of income to maintain long-term growth.
| Valuation (USD Billion) | 8 |
| Funding (USD Billion) | ~840 Million |
Conclusion
In summary, the state of Indian entrepreneurs in 2024 demonstrates a blend of risk-taking, inventiveness, and aspiration. The ten most profitable businesses, which include Zomato,
Flipkart, Paytm, Urban Company, Freshworks, CRED, PolicyBazaar, OLA, Verse, and Dream11, span a variety of sectors including financial, e-commerce, catering, and entertainment. All of these businesses have shown promise for expansion and difficulties, but they have also faced enormous obstacles and suffered huge losses. For several of these endeavors, the path to sustainability remained difficult notwithstanding their heroic attempts to seize customers and transform their respective industries.
For example, Zomato is still having to deal with rising costs and intense competition regardless of its innovative work in the online meal delivery market.
Comparably, Flipkart, which was previously praised as the shining example of Indian e-commerce, is under increasing pressure to reduce its operating expenses due to growing competition from international behemoths. The pioneer of electronic payments, Paytm, is in a difficult situation as it works to overcome legal barriers and make a profit that will last.
Companies such as Urban Group and Freshworks, Inc., although acknowledged for their creative approaches to residential goods and client interaction programs, respectively, have the difficult challenge of striking a balance between cost-conservation strategies and growth aspirations. In the same way, as they strive for global supremacy, CRED and PolicyBazaar— disruptors in the finance card incentives and ensuring comparative spaces—face difficulties with sustainability.
In the field of transit, Verse is trying to make a name for itself in the cutthroat world of digital financial services, while OLA is struggling with financial limits and operational complexity. Furthermore, Dream11, a leader in sports fantasy games, is losing more and more money as a result of its relentless recruiting tactics and ambiguity regarding regulations.
These firms can completely change India’s commercial scene, even in the face of obstacles and financial difficulties. Their experience, however, highlights the risks and unknowns that come with starting a business, where achievement is frequently dependent on overcoming several obstacles, adjusting to changing circumstances in the market, and exhibiting perseverance in an environment of difficulty.
These firms’ stories offer valuable guidance for prospective investors and business owners together as they work to conquer their present financial difficulties and find a route toward long-term growth and prosperity. Finding the right equilibrium between growth goals and prudent expenditure is crucial in an industry that is defined by rapid change and unrelenting competitiveness. Which of these firms will succeed in the long run and make a lasting impression on India’s economic scene remains to be seen.
I am Aleena Parvez, I am a Content Editor and Proofreader with Proficient digital marketer skilled in devising and executing strategies to amplify brand exposure and stimulate conversions. Skilled in SEO, SEM, and social media, with a sharp ability to analyze data and optimize campaigns for optimal results. I am highly enthusiastic about utilizing technology and creativity to achieve tangible outcomes and surpass client anticipations.
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