GenAI Startup InsurStaq.ai Shuts Shop In 16 months It was funded by Faad Network, an early-stage fund

India is home to over 150 Generative AI startups, but not all of them manage to sustain their journeys due to the challenges they face while growing their businesses. Mayan Kansal, co-founder of the GenAI startup InsurStaq.ai, took to LinkedIn to share the news of sun setting the startup.

"After more than a year of building, learning, and growing alongside some of the brightest minds in the insurance industry, we've made the difficult decision to shut down InsurStaq.ai." Kansal shared.

Founded by Mayan Kansal, and Shivam Kaushik in 2022, InsurStaq.ai was designed to bring Generative AI solutions to the insurance industry. Last year, it received funding from Faad Network, an early-stage fund, as a part of Faad Accelarator Labs' 'FinShastra'.

In a post, Kansal said, "We set out to revolutionize GenAI applications for the insurance world and, along the way, built cutting-edge products, achieved enterprise-ready compliance, and were recognized as one of the hottest AI startups by media houses and VCs alike."

While sharing its journey he said, "The relationships we forged with great mentors, advisors, and stakeholders who guided us. We built an amazing team of four—operating more like a high-performing sports team—driven by a shared vision, relentless ambition, and an incredible work culture."

As of April 2024, India has more than six thousand AI startups, with 29 of them reaching the Series D or higher funding stage. However, despite this growth, several startups have struggled to survive. Sridhar Ramaswamy and Vivek Raghunathan's startup, Neeva, also shut down last year, citing challenges like the inability to attract enough users, the rise of generative AI and large language models (LLMs), and the current economic environment. Other notable closures include India's microblogging app Koo, SaaS-based AI startup Ninety, and ed-tech startup Bluelearn, each shutting down for various reasons.