Startup Cemetery

A big resource for entrepreneurs and startup owners, in which we have collected and analyzed why +100 big companies have failed. Learn from mistakes, and avoid being part of the 90% of businesses that fail.

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Appiterate

Mobile marketing automation platform

General Information
Category
Marketing
Country
United States
Started
In 2013
Business Failure
Business Outcome
Acquired
Closed
By 2015
Cause of Failure
Acquisition Flu
Founders & Employees
Number of Founders
Four
Name of Founders
Anuj Bhargava, Mayank Kumar, Tanuj Mendiratta, Varun Sharma
Number of Employees
Between 1 And 10
Funding
Number of Funding Rounds
1
Total Funding Amount
$500K
Number of Investors
3
Description

Appiterate was a mobile marketing company, which specializes in creating “precise and targeted” user experience based on the user’s previous activity on both applications and websites. Appiterate delivered a lot of personalized notifications on its campaigns each month, roughly around 100 million targeted and specific notifications for various platforms of different e-commerce sites. This target-specific campaign technique by Appiterate landed some huge scores for those e-commerce sites who reportedly had a whopping 300% increase in their total revenue.

Cause of Failure

Appiterate didn’t technically fail but was rather acquired by Flipkart. Flipkart is India’s largest e-commerce company. The company has been serving their customers mainly on their online website, Flipkart.com, but things started to change when Flipkart saw how lucrative mobile phone apps were becoming. For over the last few years, the company noticed that their overall traffic mostly came from smartphones and tablets. The only logical move for the company to maximize their profits was to move on and develop a mobile phone-based application for their e-commerce website.

This is where Appiterate comes in. The startup vast experience working with e-commerce sites made them the perfect candidate for Flipkart’s acquisition. Appiterate services were deemed perfect for Flipkart’s goal to expand their sales by moving on with the trends and focusing more on developing a mobile-based campaign strategy for the growing Indian market and the deal went through in 2015.

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