The Startups atmosphere in India
The success stories of Flipkarts and the Zomatos of Indian startup scene has motivated many new startups and entrepreneurs. As much as (close to) 500 deals happened in India during the 6-month period ending Sep’15. The average size of funding raised by these 500 startups was ~12 Mn USD on an average.
Overall, the atmosphere in India is still pro-Startups. And the excitement is not just limited to IT hub-city, Bangalore. Entrepreneurs from all across the country are rising with their success stories. But amid these stories, we are also hearing instances where these ventures are making some news, but not for good.
Feel the Heat
We heard a great lot about Rahul Yadav took to media to for his corporate shenanigans, which did not stop here. Post which he was fired from his own Venture. Soon after this spat, Housing.com fire 600 employees (this news had broken out in Aug’15). They had also shut down a few categories, which were not ‘their focus’. Then again in November beginning another layoff of 200 headcount was announced, to meet the ‘cost targets’. And, as recent as yesterday, they announced that they will exit the Rentals and the Listings business and will focus on online Buying and Selling. [Rishie’Nama: Somewhere they are forgetting that the basic concept of Housing.com was Listings and Rentals only]
The next from the successful bunch of startups to come to lime-light is Zomato. It all started with Zomato firing 10% of their workforce (~300 headcount) in one shot. And later the famous email from co-founder-CEO to his Sales team blaming them for not doing revenues up to their investors’ expectation. We also did read about the Zomato closing down it’s Cashless business and focusing on ‘What matters and What works’.
These are just 2 successful ventures we have talked about, which have either shifted their focus or are dropping their core business and diverting their efforts to what actually ‘earns revenue’. Is it that in the hurry to become successful early are we compromising on the quality of ‘running businesses’? Or is it that the founders are so focused on getting the funding in return of doing away with what they had dreamt of?