Zombie startups

Current Context : Recently shutting down of Koo (India’s Twitter-like app) social media app has raised debate around Zombie startups.

ABOUT ZOMBIE STARTUPS

• It refers to startups that have raised enough funds (during the boom cycle) to operate but are currently not generating significant revenue.
• It refers as a firm that is neither dead nor living.
• Companies heavily laden with debt, barely able to pay interest on their loans, and at risk of collapse.
• They are highly dependent on banks for financing.
• Causes : Lack of market-suitable products, high cost of acquiring customers, funding winter,Inefficient use of Funds etc. can make a startup Zombie.