A signal-based trading app Investmint has stopped its services as the company could not come up with a business model that is reliable, as per a report by Entrackr. The company has reportedly withdrawn Investmint as a product.
Speaking to Entrackr, a company spokesperson said, “We’re in late-stage talks with a few big players for M&A.” In the event that the acquisition talks do not materialize, the company might return the remaining capital to its backers. The company is reportedly exploring acquisition opportunities with wealth management firms.
Despite having a good amount of traction and money left over from the last fundraising campaign, the team was unable to turn those resources into revenue, as per the report. In October 2022, Investmint raised $2 million in its seed funding round. It was led by $2 million in its seed funding round led by Nexus Venture Partners. It was led by Nexus Venture Partners.
Investmint, which was founded in February 2022 by Aakash Goel and Mohit Chitlangia, intends to simplify stock market operations for regular investors by providing simple trading and investment products supported by an approach to investing that is driven by data and science.
After start-ups fail to find a proper product-market fit or a sustainable business model, they often return their capital to investors. In March of this year, fashion start-ups Fashinza and Virgio decided to return investor capital after a change in their business model.
Neither of the start-ups could find a substantial solution regarding their original business plans for which they raised the money. Similarly, in April, digital health start-up Nintee shut down its operations after a year of launch. Wingify founder Paras Chopra, who had launched the start-up, said that the majority of the funds raised by the company would be returned to the investors.
