It is really interesting and
surprising to observe the dynamic change of business viability within the
investment community towards Startup. It's long before when anyone and everyone
want to be part of startup bandwagon with very strong collective voice that
India is going to be the center of Innovation, E-Commerce and Service.
Even more shocking that many Ex-CEO
of reputed organizations started their investment fund as well as turned into
MENTOR role. The virtualized form of publicity funded by big fund players even
prompted Indian government to offer multiple incentives to Startup community to
ensure that "New era of Employment" culture happens in India.
I, in my personal opinion always
stood the other side of the table and kept raising my voice about non viable
business case across sectors and many kept on giving me the news about fat
E-commerce organization funding news.
One marked down of Flipkart
valuation by leading investment firm, turned the perception of
investment community about the profitability to sustainability of business
Isn't it laughable; how
investment guru's can go wrong in their business model within weeks? That's
reminds me of Mr. Rakesh
Jhunjhunwala statement about business model sustainability of Indian
E-Commerce Companies and that is the reason that he is one of the best in his
investments.
It raises few question marks
around the handling of business such as lavish office, parties, and promotions,
pay package, paid PR. The investment
community kept on investing in those firms even after the gaps being clearly
visible in the fear of losing side.
In my point of view, Successful
investment assessment happens at Metro Station to Bus Stop to College Campus
instead of Air conditioned business lounge of 5 Star Hotel's. Root level market
intelligence is the foundation of business model which should be so flexible
that it should be refined on the fly supported by the alternative revenue
stream.
I really feel bad for the startup
for being portrait as Devil from Darling within two quarter for others mistake.
I still believe that lots
of good startup is still in the market place but they are not noticed
because they don't believe in paying PR cost just to tell the world that they
received $100k seed funding :).
It's the right time for the
investor to jump in and pick the quality company to average out their losses.
