Mumbai-based home utility service provider Taskbob has shut down its operations after about two years in the business, reported HT.
In an internal communication, Aseem Khare, CEO and co-founder of Taskbob said “…due to unforeseen circumstances, Taskbob will be shutting down its operations as of 19th January. All the orders already placed in the system will be duly processed.”
Taskbob was run by Crenovative Ideas Pvt. Ltd, and was started in 2014 by IIT graduates Aseem Khare, Abhiroop Medhekar, Ajay Bhatt and Amit Chahalia. The startup had raised over $5 Mn in two rounds of funding from IvyCap Ventures and Orios Venture Partners. Besides, it had also acquired a Bangalore-based home services startup Zepper.
The reason for the closure is not known however, Khare has indicated that the company was not able to build scalability as well as profitability. He said “Even though, we could create a significant difference in customers’, service providers’ and teams’ lives, a solid business is created only by building scalability and profitability. And to achieve those in a low margin business and in a tough external market proved unexpectedly daunting. More than what anyone could have expected.”
Prior to the mail, several other rounds of firings had happened, and employees had been told that the company was shutting down in December last year.
The home services space has been hard to crack, last year, some of the startups that shut shop included Snapdeal-backed PepperTap and AskMe. Despite successfully raised fundings from investors in the last 2-3 years, high cash-burn has forced many startups to scale down, shut operations or sell their business.