Signal-based trading app Investmint has paused its operations as the company struggles to establish a reliable business model, sources familiar with the situation revealed to Entrackr.
Investmint, which raised $2 million in a Seed round led by Nexus Venture Partners in October 2022, was launched in February 2022 by Aakash Goel and Mohit Chitlangia. The app aimed to assist users in making investment decisions and managing wealth through data-backed signals.
Despite having decent traction and a substantial amount of funds remaining from its last fundraising, Investmint faced challenges in monetizing its user base. According to sources, the firm is actively exploring acquisition opportunities with well-capitalized wealth management companies. “Investmint has been exploring acquisition opportunities with well-capitalized wealth management companies,” said one source requesting anonymity.
The company’s spokesperson confirmed the discontinuation of Investmint as a product and mentioned that the team is re-evaluating its offerings. “We’re in late-stage talks with a few big players for M&A,” the spokesperson said.
If the acquisition talks do not materialize, Investmint may return the remaining capital to its investors. “If the acquisition talks don’t materialize, the company may return the remaining capital to its backers,” added another source who also requested anonymity.
This trend of returning capital to investors is becoming more common among startups that fail to find a product-market fit (PMF) or a sustainable business model. Earlier this year, digital health startup Nintee, launched by Wingify founder Paras Chopra, announced its shutdown and the return of the majority of its funding to investors. Similarly, fashion startups Virgio and Fashinza are reportedly planning to return most of the capital they raised after unsuccessful pivots. Virgio has raised nearly $40 million, while Fashinza has secured over $150 million in funding to date.
While investors generally prefer not to exit a portfolio company with only a portion of their original investment, the trend of founders returning capital when things aren’t working out is viewed as a progressive step. It allows both founders and investors to move forward rather than being stuck in unproductive ventures.
Source:- Entrackr
