VC's apathy towards founders without elite college education kills a startup.

It sounds more like they killed your motivation to continue - you had a product and top tier customers, they didn't take that away from you.

This could very well be a one off incident but is very discouraging for people who actually try to start something here in India.

Really, its like blaming someone else for your mistakes. Uncool

Have you considered a sale of the business?