Tapzo to shut down: What lessons it left for entrepreneurs?September 5, 2018
App aggregator Tapzo, which was earlier got acquired by Amazon, announced that it will shut down the app by October 31, 2018. Making new transactions on the app has been already blocked and its customers have been asked to provide their bank details to refund the money which is there in their wallets.
“Since we launched the app 3 years ago, we’ve been fortunate to serve over 5 million customers. Your feedback and reviews (200,000+ on PlayStore alone) and the 4.5 rating kept us motivated and always learning. It’s been a pleasure listening to you all and continuously shipping an app update every few weeks consistently. But all good things must come to an end,” Tapzo, which was so far backed by Sequoia, said.
Tapzo had almost 35 mobile apps on its platform including Uber, Ola, Swiggy, Zomato, Airtel etc. Tapzo allowed users to use multiple apps from its platform, therby doing with the need for downloading multiple apps and saving storage on device.
According to PTI News, Amazon had acquired Tapzo for 40 million USD. So far, Tapzo had raised over 33 million USD capital from Investors like Sequoia Capital, RB Investment, and American Express among others.
What lessons it left for entrepreneurs?
Success behind any company is likely to be the three factors; planning, commitment and consistency. In this case, despite raising such capital amount, it failed to find stable business case. It taught that pivots can always backfire if not backed by a clear roadmap and proper execution.
Raising capital using strong industry keywords or statements is easy but building it in a sustainable way is difficult. Tapzo’s journey is a cautionary lesson for upcoming entrepreneurs who try to use buzz words like Artificial Intelligence (AI), Blockchain, Machine Learning (ML), Financial institutions, edu tech etc while talking to the investors and media, without long roadmap and execution.