A year is a lifetime in case of startups, said Anandan who is MD of Google India and South East Asia. He hosted an event for startups in Sri Lanka. Also known as an angel investor in India and Sri Lanka has founded an investment arm called Blue Oceans ventures. He agrees that India has become a tough market to penetrate into. Thanks to all the startups coming up with unique ideas.
Similarly, the Chief Executive Officer of Future Group, Mr. Kishor Biyani thinks that 90% of Indian startups have no meaning. They do not look at the big picture and try to micromanage everything. Additionally, they are too small to create jobs. His first hit was on the taxi service in India like Ola. He estimated that the revenues from such companies will not be more than 3500 crores in another 4-5 year time.
The companies who approach for funding have already sold 80% of their companies to the investors. Most companies are funded by venture capitalists. Once they break even, large companies will buy them. On the contrary, he appreciates the minds behind the ideas. He mentioned that they are talented people and should work on the bigger picture. There are possibilities at altogether another level.
Big Bazaar Direct will be shut down within a week. It was started in 2012 by Future Group with around 1000 franchises. He also mentioned that this is not the right time to implement e-commerce business as it could be disruptive in the future. The company has acquired Fab Furnish and wants to follow omnichannel approach. It has partnered with Paytm to sell its products for the digiwallet marketplace.
After some research, I found out that most of the startups in India have a cloning problem. Every new startup that comes in already has a global competition. Some of them are also present in India as well.
Original ideas need to emerge where needed
E-commerce, for example, has been oversubscribed with clean technology. There are several spaces which need innovative thinkers and focus on unique challenges in India. Funders are not necessarily looking for an original idea, but something with a spin which can give a whole new direction to the industry and market share. For example, cooking curry in India is no innovation, but making it healthy and allowing people to prepare it at home with certain control can be the outcome. Original ideas exist, but there needs to be a lot of research in the process.