Digital health startup Nintee shuts down, Plans to return remaining funds

Nintee, a U.S.-based digital health startup backed by Peak XV Partners and other investors like Cred founder Kunal Shah, has announced that it will cease operations.

The company's CEO, Paras Chopra, cited scalability and customer acquisition challenges as the main reasons for the shutdown.

In his statement on the company's website and on X and LinkedIn, Chopra said, “The majority of the funding we raised is still remaining, and over the next few weeks, we will return it.”

Financial handling and strategic pivots

Initially launched to use AI to help people build better habits, Nintee attracted a niche market but struggled to scale to a venture-capital (VC) level business.

Chopra detailed their strategic journey, saying, “Our original hypothesis was to use AI for helping people build better habits to transform their lives. This attracted a passionate niche, but we couldn’t build conviction that it could be a VC-scale business.”

The startup also attempted to pivot to education and learning-related ideas but found significant barriers: “Building a successful consumer app today is very hard (as you're battling for attention with YouTube, Instagram, and Fortnite).”

Employee severance and future opportunities

As a result of the closure, all Nintee employees have been laid off, with each receiving four months of severance pay. Chopra has offered these employees the same salary to join his other company, VWO, a New Delhi-based website-testing software provider. 

Industry context and broader impacts

Chopra's announcement comes amid a tough period for startups globally, referred to as the funding winter, which has seen many similar ventures downsize or close. 

For instance, in India alone, startups like ConnectedH and Healthify have also faced shutdowns or significant layoffs. The broader economic climate has prompted many investors to tighten their budgets, impacting startups across various sectors.

Despite Nintee's shutdown, Chopra remains optimistic about his entrepreneurial ventures, expressing a continued passion for building and innovating. His primary venture, Wingify, has been profitable, showing a revenue increase of 16.8% to Rs 223 crore in FY23 and a profit after tax of Rs 51 crore.

On a hopeful note, Chopra stated, “As for me, there’s no dearth of ideas. I love building things and would continue to do so.”