Struggling Business: MyPickup Closes Down; Founder Admits Insufficient Funding Estimation
MyPickup, an electric auto-rickshaw ride subscription service founded by Abhijeet Jagtap in February 2023, has announced its closure after nearly three years of operation. The startup, which raised Rs 1.5 crore in seed funding from Inflection Point Ventures (IPV) in July 2024, struggled to find a product-market fit during non-peak hours, leading to financial sustainability concerns that deterred institutional investors.
Despite the challenges, MyPickup managed to make a significant impact during its tenure. At its peak, the startup was completing about 4,000 rides per month with just 19 vehicles and approximately 100 subscribers. The subscription model, which allowed commuters to book weekly or monthly plans with zero cancellations and no surge pricing, was well-received by customers who valued the service.
Jagtap, the founder of MyPickup, expressed his gratitude to IPV's co-founders, Ankur Mittal and Mitesh Shah, for their trust and support. He also credited his team and early supporters, including Varun P., Saion, and first investor Arvind, for backing the venture. However, Jagtap cited a lack of access to patient capital as a primary reason for the startup's closure.
Patient capital, a form of long-term investment that does not demand quick returns, is crucial for the success of many startups, especially those in the mobility sector. As Jagtap reflected on the difficulties of scaling a mobility startup in India, he noted that a lot of effort and genuine long-term strategic thinking is needed just to keep Indian cities from crumbling under their own weight.
The closure of MyPickup comes at a time when ride-hailing, mobility, electric vehicles (EVs), and public transport infrastructure are at the cusp of transformation in Indian cities. Policy, climate change, innovation, and capital will shape the future of infrastructure in Indian cities, making it one of the most exciting times for entrepreneurs to build 'real' businesses in the sector.
Jagtap remains optimistic about the future, planning to fully utilize the learnings from the past 2.5 years in his future endeavours. He emphasised that building a 'real' business in India is tough, but it is one of the most exciting things an entrepreneur could do.
As MyPickup bids farewell, its legacy serves as a reminder of the potential for innovation and the challenges that lie ahead in the Indian mobility sector. The journey may be tough, but the rewards for those who persevere could be immense.
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