Bangalore based Salorix, a data analytics company which was approached twice by Google — first in 2012 and again in January 2013 has shut shop. Reported earlier by ET, the startup has not given an explanation of its shutdown but the difference that rose between the founder and investors could be one of the primary reasons.
Founded in 2009 by former NASA scientist and IIT Bombay alumnus, Santanu Bhattacharya, Salorix had raised $3.5 million (Rs 21.6 crore at current rates) in 2011 in Series A funding from Inventus Capital Partners and Nexus Venture Partners in November 2011. The company had plans to use this investment to improve its technology development efforts and expand its existing solution sets.
With offices in India and US, the firm had developed a social media analysis technology and had customers including premium chocolate maker Lindt, Europe’s largest automaker Volkswagen and Levi’s, the world’s biggest maker of jeans.
In India, Salorix worked with Warren Buffett’s Berkshire Hathaway to help the insurance provider with its social media strategy.
Problems started to erupt when founders and investors had a disagreement about the buyout offers. Bhattacharya seemed to have problems when investors made a recommendation to take the Google offer. It seems that the founder was asking for a higher price, as a result, the investors decided not to infuse fresh capital, leading to a closure.
However, Bhattacharya has only confirmed the shut down without giving any further details.
“It was a great part of my professional experience,” he wrote in an email. “Unfortunately, all good things must come to an end and this one did, too.”
It is also being said that the company apparently shutdown in May 2013, which has been finally made public today. The firm is yet to pay its employees the promised severance package, including bonus.
In fact last week, Techcrunch had reported that Little Eye Labs was not the only startup that was approached by Facebook, Salorix was also approached in October 2013. The reason why the deal fell apart was due to the excessive price quoted by investors compared to the initial price offered by Facebook.
Last week the TC article was mulling about the future of Salorix and today it is all clear. A startup that had the best customers with an amazing product could have easily become the second startup to be acquired from a country, where exits are rare.