Elevation And Accel-Backed Anar Shuts Down Operations

Platform Shutdown Announcement

News: Nishank Jain, the founder and CEO of Anar, a B2B networking platform supported by Elevation Capital, has revealed the company’s decision to cease its operations. The announcement of the closure was made by Jain on a social media platform. He assured that if the startup still holds funds from investors, it will be refunded to them.

Challenges Faced

Despite witnessing substantial user enthusiasm, especially from vendors, Jain acknowledged Anar’s shortcomings in adequately supporting them. The company’s endeavors in networking, leads, and other transaction methods failed to yield the anticipated results. Upon careful analysis, Jain determined that retailers did not prioritize sourcing, leading to the company’s challenges.

About Anar

Founded by Jain and Sanjay Bhat, Anar aimed to assist small and medium-sized businesses (SMBs) in expanding their omnichannel networks. The platform facilitated the creation of accounts for retailers, resellers, wholesalers, distributors, and manufacturers. Users could upload catalogs, make posts, connect with one another, post requirements, and engage in communication through the platform.

Lack of Value and Poor Retention Rates

Jain additionally highlighted that Anar witnessed a deficiency in perceived value for purchasers and struggled with low retention rates. This challenge was evident in the company’s financial performance during FY23, marking its third full fiscal year since its official launch in February 2020. According to TheKredible, a data intelligence platform, Anar recorded losses of Rs 17.32 crore and reported minimal revenue in FY23.

Long-Term Engagement and Retention Challenges

Anar, backed by Elevation Capital, successfully initiated meaningful conversations between buyers and sellers, but encountered challenges in sustaining long-term engagement and retention. Despite initially promising results, the startup ultimately faced failure. This trend is not unique, as many businesses, including the cosmetics brand Belora, have also announced shutdowns citing factors such as insufficient funding.

In summary, Anar, the B2B networking platform, has decided to cease operations due to difficulties in providing value to vendors and retaining users. Although it facilitated conversations between buyers and sellers, the startup struggled to maintain prolonged engagement, contributing to its closure.

FAQs

Q: Why did Anar decide to shut down its operations?

A: Anar faced challenges in delivering value to vendors and retaining users, which led to its closure.

Q: What was the financial performance of Anar in FY23?

A: According to TheKredible, Anar incurred losses of Rs 17.32 crore and had minimal revenue in FY23.

Q: Are there any other businesses that have announced their decision to cease operations?

A: Yes, many other businesses, including Belora, a cosmetics brand, have also announced their decision to cease operations.