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I feel that Indian startups should focus on being industry leaders, rather than focusing on exit strategies. We need a stable ecosystem, rather than a bubble that could burst at any time. Bootstrapping is the way to go forward, it takes time, yes, but it ensures profitability and success. Take Zoho and Directi for example.
True. But the current VC-funded zero-sum ecosystem makes it close to impossible to compete with the funded firms in marketing and sales. Starting a Zoho or Directi by bootstrapping was possible up to 2013. I do not think it is remotely possible now.
Most companies here arent bubble. It has become fashionable to label everything as a bubble. Mowt companies on this list like Paytm, Delhivery has fantastic future.
fun fact: I've talked to a few IIM-B students there they are actually teaching a good way of how to attract investments rather than teaching actual business, if you look closer you can see a pattern on these loss-making startup founders were actually mostly from IIM(getting funded as a non-tier-one college alum is still a daydream ), something somewhere is wrong in the model
@oof Lol. BITS Pilani has produced the third highest number of startups in the country after IIT Delhi and IIT Bombay. Being a BITSian still gives you an edge when it comes to start up funding.
Please make a video on explaining, why investors are still investing heavily on these loss making startups, their thinking and exit strategies, etc and also a video on profitable startups of India. Thanks BwM Team
Partially agree, but also disagree on Flipkart. Zoho and Zerodha are going to be multi national companies, Flipkart going to be profit in some time. But companies like CRED and Swiggy cannot survive and for sure they are going to die once the funding inflow is stopped. Zomato IPO is going to be a big failure.
@@learningmaster8060 I agree about Swiggy. Zomato IPO might be failure initially too but it will survive in long run. But what Cred is doing, it still a unchartered territory. It will too early to be decisive.
It's not ONLY present in India, loss making startup are worldwide whether it is China, US, ASEAN or India. Investors know this fact very well but they bet on future of today's microcompanies/startups. PS: Benzos founded amazon (today's largest blue-chip) on July 5, 1994 but Amazon generated its first quarterly profit in 2001, the final quarter. In 2003, they generated their first annual profit, a whopping $35 million on revenues of $5.3 billion. Source :WION & Wikipedia
You're absolutely right Startups Scientist, that's why I kept things as general as possible in the introduction, without referencing India until just before the logo animation. We are an Indian channel, so our focus is always on India, but definitly, loss-making startups are everywhere - losing money in the name of growth is _the predominate_ startup strategy, no matter what ecosystem you're in. -Caleb
A smart investor accepts that there is a 90-95% chance that they won't get their money back Akshat. When investors make investments that they can't afford to lose, we don't call them investors, we call them gamblers 😂 Furthermore, VCs usually aren't even spending their own money. VC firms raise money from LP investors, who hire VCs to invest their money for them. LPs trust VCs to make them money, and the big ones don't really care about losing a few million dollars here and there, because their net profit from all of the investments still outweighs these losses. -Caleb
Hey Caleb! It's a suggestion that you can change the thumbnail and include the logos of the companies in it. As the video includes very renowned startups and are loss making will increase the probability of more and more people watching the video.
Such a knowledgeable video. This video threw light on the darkest sides of entrepreneurship. It was new to me that such startup are making so much losses just for customer acquisition. 😭👍👍👍👍
Across sectors all these startups only strategy is to give humongous discounts, once that stops they have no clue how to move ahead, It's sad to say that all these would eventually fail at some stage.
i also feel that . ultimate goal of a business is profit, all startups with goal of growth without profit in sight are bound to fail. investors are basically playing in a casino, they're only betting to win big in 1 and compensate for their loss in 10.
thats why they are in loss , if a resource gets 19 lakhs for 2-3 of exp than you are not paying high you are just screwing the market and you dont have any vision.
@@ultimatum97 unless you are justifying that salary for the work you are doing it’s good . Else just reading through Udemy and other courses and getting through interviews and than not justifying it may create great humiliation for the person himself and creates imbalance in the industry for salary and can become fateful for the organisation they have joined .
@@aruparanjansatapathy7048 Organization is the last thing tech employees care about. Just like traders who make huge profits during times of scarcity, engineers should make the most out of this situation. There's simply nothing wrong in it.
Amazing information. I loved that information about supreme court decision about Dream 11 being game of skills instead of gambling. I always had doubt how this kind of company running legally and doing ads in IPL
Hello BWB Team, Thank you again for the awesome video. These 14:29 minutes was worth it. You are guys are diamonds. Would also like to appreciate Caleb for answering a gentleman query why Dunzo was not included in this list. Love you guys. Peace & Love.
Zomato is making money by exploiting delivery boys and doing frauds to their salaries while charging customers delivery fees which hardly is given to delivery boys.
You can make more case studies... And also various startup knowledge content.. Good channel 👍... Also you can make case studies from various other countries..
Sir its Insane that we cal 12-13 year old companies a "startup". These startups are following the amazon model but unlike amazon here the competition is much much more.
In India its all about scalability, u need a small business model and push it to large scales. All inspired by jio which was a master piece in itself but jio was much more successful due to digital india push and most importantly UPI in India. It was like a hub of its own.
Hey! I watch your videos and have watched all of them. Could you please make a video on - "Top Construction Material Supply or Construction startups in India" ? I'm eager to watch it.
The business model of OYO is somewhat sticky. It has lots of problems in their planning. Actually the start-ups in current era are not being started to solve client/customer's real problems, it's always a plan to become rich individually rather than anything else. They are just in wait for a perfect exit point. Stable and pure mind is needed to build a profit making buisness.
Yes the channel needs more viewers … maybe a metamorphosis will be a ecosystem built to support Kickstarter or collaborate with a few decent ones … it could include talks, interviews, legal support, workflows and assistance for startups which are in conceptualizatiob phases :) … idea for a new startup 🙂
Urban Company has really poor service...used a few times had a bad experience. One time they said they couldn't deliver the service and also refused a refund.
Most are service sector, but for such populous region, there's no shortage of labours then still I don't know y they don't step on manufacturing sector (like china).
Almost all indian startups are copycats. Most are indeed doomed to fail. Next day if reliance starts delivering food, swiggy and zomato will lose share.
This is how the industry operates, bleeds cash till you acquire the user base, basically jio is a success story which pulled off the same thing now they have also leveraged the stock to be debt free. So no nothing is exposed here. This is actually quite common, and there are also n number of American companies doing the same thing.
The only startup I don't understand yet is CRED. I never saw a problem they are actually trying to solve . I genuinely don't think I will use CRED just to track my Credit cards. Nah...
Hi Veena, Think School made an amazing video explaining CRED's business model, you can check it out here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-EUcVBDtJo5M.html -Caleb
Hi Rahul, I believe the money is going towards growth, mainly through customer acquisition via discounts and heavy marketing. With Urban Company they are expanding internationally, which costs a lot of money: marketing in new countries, employing new people, setting up new offices, etc. With CRED, they are onboarding new customers by throwing money at marketing an also offering CRED coins, which can be used to buy rewards - not sure how much of that comes out of CRED's pocket, but I'm sure those companies aren't giving away these rewards for free. Udaan, Ola Cabs, and OYO are using whatever money they have probably just to stay alive. Swiggy and Zomato are offering discounts to customers to continue customer acquisition so that they can stay competitive with one another, and also marketing their services in order to onboard new customers. Dream11 spends _a lot_ on marketing - they are onboarding customers like crazy. And Paytm and Delhivery are actively cutting down on their losses and aiming to break even soon, along with Zomato. Some of these companies also spend quite a bit to keep their employees happy, so there's that as well. -Caleb
Hi Toni, I actually don't talk about India for the views (as opposed to talking about America's startup ecosystem, or my own country of Canada's startup ecosystem). I talk about India and India's startup ecosystem because I live in Bengaluru and my co-founder is an Indian serial entrepreneur! Feel free to check this video out to learn more about why we started BwM here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-KjySP-7acyY.html -Caleb
*Ola will be the only one... in the list... to make it to the next decade* ... Ola Electric Scooter Taxi will change its tide and *even capture ENTIRE Asian & African Market*
Almost every startup is in loss as they are startups, and compnay shuld not label them as startup after 4 yrs of span, so till then they shuld start making profits if every odds are on their favour. So key point is If startups are in loss then its not something to worry about its part of the game
It is good for the country if many startups are Non-Profits. Section 8 companies cannot raise Capital but they can take Donations (which is VC money in disguise).
I mean it is _loss_ click bait, the money is being _lost_ in the short term, but yes, as you have said, a lot of the time those losses are purposeful and result in massive growth and expansion 🙂 for startups, losses today = gains tomorrow. -Caleb
Really good content. Although I can really help you with subtitles if you need help,i can understand with so much script its hard to remember to do everything perfect . Great content though👋
Hi Abhy, if this is something you'd be interested in helping us out with, we'd love to collaborate. You can reach us at backstagewithmillionaires@gmail.com -Caleb
