Sustainkart, an eCommerce marketplace founded by Shilpa Reddy & Kanthi Dutt has reportedly listed over 1,100 brands and 93,000 stock-keeping units (SKUs) on its platform. In the recent weeks it has come to media attention that SustainKart has shut down amidst allegations of financial mismanagement. Earlier today the founder denied all the claims made by the investors.
On the contrary, the founder repents the partnership with India Accelerator : a Delhi based startup accelerator, claiming it to be the reason for startup going south. He stated that, “Is it my wrong judgement to partner with a 6 year old accelerator with no successful start-ups in its kitty? Maybe”. It is observed that the startup faced financial crisis in the later part of the year 2022. “The launch of private labels and offline retail had led to a quick burn of fund. We expected a follow on round of $1.5-2M, as committed by IA”, he added.
The founder has also stated that the company has not violated any government regulations. The startup ecosystem has become very volatile. From BharatPe to BYJUs to PayTm, several startup founders have been accused of failing fiduciary duties. Although in Sustainkart case, the founder proudly stated that he is glad they shut shop sooner than later. “Today I’m not having to repent about raising 10s of millions of dollars in the name of sustainability”, he penned in his Instagram post.
Dutt continues to focus on his entrepreneurship goals as he writes, “SustainKart’s journey has ended, not mine”. boAt’s Aman Gupta in an interview mentioned that he started and shut down five businesses. Gupta said, “each failure was a learning experience and a stepping stone to his future success” in the likes of Failure is part of success - Michael Jordan. An Economic Times report states that over 68% of the startups are not profitable in FY23. Recently, Shark Mama’s Honasa shares slumped nearly 6% losing its unicorn status.