AskMe launched in 2012 as a local search and commerce platform for Indian consumers. It also operated AskMeBazaar, an e-commerce marketplace. At its peak, AskMe connected users with 100,000+ merchants across 50+ Indian cities and employed approximately 4,000 people. Malaysia's Astro Entertainment had invested ~$300M.
Company Data
- Founded: 2012
- Total Funding: ~$300 million
- Employees at Shutdown: ~4,000
- Failed: August 2016
In August 2016, Astro suddenly pulled funding. AskMe couldn't make payroll. Employees arrived to find they had no jobs, no severance, and no explanation. Over 4,000 people lost their jobs overnight. Vendors were left with unpaid dues. The collapse highlighted the danger of single-investor dependency.
Key Lesson
Never depend on a single investor for survival. Diversify funding or build toward self-sufficiency before one investor's problems become your existential crisis.