This automation startup calls it a day after 3.5 years into business, all employees lose job; founder promises to return capital to investors

Toplyne, a sales automation SaaS startup, has announced its closure after operating for about 3.5 years. The decision was confirmed by co-founder and CEO Rishen Kapoor through a LinkedIn post, where he stated that the company will return funds to its investors. Despite raising significant capital and efforts to scale, the business was unable to achieve product-market fit.

Kapoor explained that Toplyne had not grown as anticipated and ultimately could not find a sustainable market fit. While details regarding the exact amount to be returned to investors were not disclosed, the company is making provisions for a full return.

Founded in 2021

Toplyne was launched in 2021 by Rishen Kapoor, Ruchin Kulkarni and Rohit Khanna with the goal of helping businesses convert free users into paying customers. The company integrated AI-powered platforms like Salesforce and HubSpot into its offerings, but despite its advanced technology, it struggled to scale effectively.

Employee Support Amid Shutdown

Kapoor also assured that the company is assisting its 30 employees in transitioning to new jobs, offering full support in the job search process. Additionally, Toplyne is helping its customers with a smooth transition as the company winds down operations.

Significant Funding Raised

Toplyne had garnered substantial attention in recent years, especially after raising $15 million in a Series A funding round in 2022, led by Tiger Global and Peak XV. The company had earlier secured $2.5 million in initial funding, with investors like Together Fund, Sequoia India’s Surge Accelerator, and several angel investors participating.

The closure of Toplyne marks another setback in the startup ecosystem, as the company joins a growing list of tech firms unable to sustain long-term growth despite early promise.