They lost it the day they got acquired by N18. I remember we had a debate around this on nextbigwhat (pluggd.in at that time) and one of the readers actually published the shareholder structure / the funding details from N18/Haresh.
We even got legal threats from Deap over this but if you are really keen on understanding why Burrp failed, here is Deap @Unpluggd.
TLDR: enthu team, rejected by all investors, lawyer was poached.
When they were at their highest high, they were totally 'inspired' by web 2.0 model - i.e. make great product, but no revenue.
Zomato just ate them with a much deeper operational expertise. burrp wanted to focus on tech / product (and they did an awesome job), but what really happened after Zomato's funding from InfoEdge and the rebranding from Foodiebay was that Zomato came and captured one vertical.
Burrp kept playing the 'local search' game while they should have positioned themselves as food destination. They had the best chance to grab the food market - but then...these are all stories.
All is well that ends well.
The burrp mafia is kicking ass and that's what matters. Glad to see 'logical end' to the story.