WittyFeed, a digital startup fighting to survive

Research methodology This case study was developed based on primary and secondary data. For the primary data collection, an in-depth interview was conducted with Vinay Singhal, one of WittyFeed’s founders, in December 2022, and follow-up emails were exchanged. Secondary data was obtained from press releases, the WittyFeed website and internal documents provided by the organization. The case study was presented at the 2023 annual conference of the Eastern Academy of Management. The feedback received was considered, and the case and IM were modified. The primary suggestion from the conference reviewers was to clarify the case decision, which has been revised accordingly. Case overview/synopsis WittyFeed, a digital start-up founded in 2014, aimed to publish trending worldwide stories on its platform for the user’s entertainment. However, after scaling up and enjoying much success, its business model failed overnight. Ninety percent of its revenue came from advertisements, such as displays and banners, and the other ten percent was from sponsored content through brands that paid to have their content featured on WittyFeed’s platform. WittyFeed attracted users through internet “influencers” who published WittyFeed’s stories on their Facebook pages. After achieving 120 million visitors worldwide and US$6m in revenues, in November 2018, overnight, Facebook suspended all accounts connected to the influencers and sent them notices citing a violation of terms. Without the Facebook page, its business model was no longer feasible. In February 2019, after running out of money, WittyFeed proposed to its 94 employees that they invest in the company by taking home 25% of their salary and doubling the other 75% as equity. On March 1, 2019, considering that 54 employees accepted to invest in WittyFeed, the start-up had a chance to survive. The start-up partners had six months to find a new business idea and develop a new business model, otherwise, they would close their doors. Complexity academic level This case is intended for undergraduate and graduate courses in Entrepreneurship, Innovation and Strategy. Topics covered included digital platform, entrepreneurial mindset, strategic analysis frameworks, business idea generation and entrepreneurial opportunity recognition.