Can anyone help us to understand why this template has been rejected?
Typography is not good. And there is lot of text in text boxes in home page. You should learn more about design and typography.
Too simple for Themeforest.
You should try to catch current market standard
You need to improve the design. Come up with unique ideas. Take a look at newly added themes on themeforest to have an idea of what kind of work gets accepted here. The standard of themeforest is higher than any other market place. Best of luck.