Hyderabad based personal finance startup, Investopresto has shutdown. The company which raised angel funding from Singapore based angel investors couldn’t raise the next round of funding and had to shut down the company.
In their parting note, the company has partly blamed the investors for not focusing on the right metrics.
Unfortunately, investors here seem to be least interested in user growth and only care about revenue. Would this have done much better in a better eco-system? Probably… but it is what it is. Our next venture will definitely not be in India.
Our model required follow-on funding at regular intervals as we were focused on user-growth rather than revenue generation. Unfortunately, the eco-system here was not able to support this model. Therefore, we had no option but to cease operations.
Earlier, Blume Ventures funded Moneysights shutdown and Pune based Paisa.com also ceased its operations.
Apart from the fact that most of the personal finance sites focused on virtual stock trading model and have taken social integration as a big feature, the truth remains that personal finance business is still a media/content business (information aggregation) and the numero uno, i.e .Moneycontrol does understand that part very well.
What’s your take on the lack of success startup story in personal finance space? The market is definitely big enough, but is there a space for transactional-only play?