Jakarta –
Starting a startup company may have been a dream for many young entrepreneurs. Especially considering the potential for startup success to become unicorns and decacorns.
However, in reality building a startup company is not as easy as imagined. In fact, for various reasons, many startups cannot survive and eventually go out of business.
Launching from CNBC IndonesiaAccording to the Spokesperson for the Ministry of Communication and Information, Dedy Permadi, the failure was due to managerial factors, such as lack of experience and a clear vision from the founder.
Furthermore, said Dedy, as written in the Failory Report, the lack of focus in running a business is also the cause of the failure of startups in Indonesia.
“In addition, according to a report from CB Insights, the two main reasons startups fail are because they run out of cash and there is no market need,” said Dedy when contacted by CNBC Indonesia via text message.
Summarized by CNBC Indonesia, here are some startups that eventually had to go out of business in Indonesia:
1. Airy Rooms
Before the Covid-19 pandemic hit, the hotel aggregator business was busy. They partner with property owners, from hotels to small motels, to offer places to stay of the same standard via an online platform.
When the pandemic hit, many startups were forced to stop operating, including Airy Rooms, which stopped operations as of May 31, 2020.
Airy Rooms Indonesia CEO Louis Alfonso Kodoatie said the termination of all Airy operational activities was carried out taking into account many things, including the market condition that almost collapsed due to the Covid-19 pandemic.
2. Stoqo
Still in 2020, a startup that sells basic necessities online for its culinary business through the application, Stoqo, officially closed its service. Stoqo is a startup that runs a business with a B2B (business-to-business) concept.
This startup supplies fresh food ingredients such as chilies, eggs to coffee grounds to food outlets or restaurants. Inevitably, when the Corona pandemic limited business space, it also weakened Stoqo’s business.
Stoqo last served customers on April 22, 2020. The day before, the management had gathered employees who informed them of the termination of Stoqo’s operations. In the end, Stoqo announced the termination of operations on the company’s website. “It is with a heavy heart that we announce that STOQO has ceased operations,” the company wrote.
In fact, 250 people have been employed at Stoqo since it was founded. Several investors also funded the company including Alpha JWC Ventures, Accel Partners, Insignia Ventures Partners and Monk’s Hill Ventures.
3. Qlapa
The closing of this one startup is not related to the pandemic. The online selling platform specifically for Indonesian handicrafts, Qlapa, officially stopped its services in 2019 after 4 years of operation.
Founded in 2015, Qlapa was unable to compete with other e-commerce sites such as Tokopedia and Bukalapak Cs.
“Almost 4 years ago, we started Qlapa with the mission of empowering local artisans. We went through many ups and downs in this incredible journey. We are very grateful for all the positive feedback from sellers, customers and the media. The support we have received very extraordinary and encouraging,” wrote Qlapa management released a statement on its official website.
4. Sorabel
The fashion e-commerce startup Sorabel has ceased operations effective as of July 30, 2020. In the leaders’ letter to employees, it was explained that the company was doing its best to save the company. But with a heavy heart have to take the path of liquidation.
“Due to the liquidation process, the employment relationship must end at this stage for everyone without exception, effective July 30, 2020. I’m sure no one expected this to happen,” the letter said.
Reportedly, Sorabel had to stop operating due to running out of capital and difficulties in raising new funding in the midst of the pandemic.
(fdl / fdl)
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