Trading platform Investmint's operation comes to standstill appearing for M&A deals
Signal-based trading app, Investmint, has decided to suspend its services due to the company's struggle in identifying a dependable business model. During October of 2022, Investmint secured $2 million in funding during its Seed round, which was spearheaded by Nexus Venture Partners, alongside contributions from various angel investors.
According to the report, the firm had decent traction with substantial money left from the last fundraise but the team couldn’t transform them into monetization. the report also added that, the startup Investmint has been exploring acquisition opportunities with well capitalized wealth management companies.
The startup was founded in February 2022 by Aakash Goel and Mohit Chitlangia. The company aims to assist users in arriving at investment decisions and managing wealth with data backed signals.
The report also added that, if the decision of merging & acquisition doesn’t materialize, the company may return to its previous position with the capital left with them and their backers.
One of spokesperson assured that, the team has discontinued Investmint as a product and is re-evaluating its offerings. The company spokesperson also confirmed that, they are in late-stage talks with a few big players for M&A.
Several startups have either returned or are currently in the process of returning the funds invested by their investors due to their failure in finding a product market fit (PMF) or a sustainable business model.
Earlier this year, a digital health startup Nintee, which was launched by Wingify founder Paras Chopra has announced shutting down their operation. The firm also declared that it will return the majority of funding it raised from the investors.
Meanwhile,Fashion startups Virgio and Fashinz are planning to return most of the capital they raised from the investors after a failed pivot. Virgio has raised nearly $40 million while Fashinza has scooped up over $150 million in funding to date.
According to the market report, majority of investors don’t like to exit out from a portfolio company with a slice of their original investment, the trend of returning capital by founders seems to be a progressive one.
