The Indian startup eco-system / 2 years down the line!

I had blogged about this extensively about 2-years ago (around Sept 2014). I thought it would be a good checkpoint to re-visit this topic to see (and gauge) where we stand today.

Rewind the clock a little backwards and this is what one saw back then: I had not yet joined India’s foremost e/m-commerce company when I blogged about the irrational exuberance prevailing in the Indian startup eco system, my previous startup company was not hugely funded yet by marquee VC firms/PE investors back then and there was indeed a HUGE VC/PE interest in startups of all shapes and sizes, focus on growth (profitability was forgotten!), Flipkart was making all the news with it’s billion $ funding announced in July 2014, as with all rising tides, all boats were lifted and there came a slew of startups – both solving someone’s unmet need and those that weren’t!

Fast forward to today and here is what one sees: Lack luster VC/PE interest in startups (especially new startups). Edgy founders. The food delivery startup mayhem took an untimely hit, e/m-commerce startups have almost ground to a halt on their old discounting model to acquire/buy consumers, VC/PE investors are looking to cash out after years of pouring money into startups of all shapes and sizes, investor enthusiasm shifts from growth/buying customers to focus on profitability/reducing burn and the goal to be the first in its category / vertical to reach GP zero from a high GP negative territory! So, how did this come about and what are the lessons one can derive from this choppy ride? Read more of this post


The startup hype curve!

Not a single day goes by without the newspapers screaming with headlines suggesting <XYZ> E-commerce company making waves and raising <X> USD venture funding. Friends, family etc. everyone are trying to jump onto the e-commerce bandwagon and everyone wants to come to the party and hopefully, make some quick bucks. I see history repeating here in India and I want to caution my readers about the craze surrounding:

1. Startups, 2. E-commerce boom, 3. Startup boom (not as a way to solve real customer problems but as a way to make easy money)

Read more of this post