An Indian Unicorn Admits It Screwed Up And Is Rebooting With Layoffs

In the rush to grow rapidly, several Indian startups have over the last year ventured into areas not directly related to their core businesses. For instance, in December 2017, ride-hailing startup Ola acquired food-delivery startup Foodpanda and e-commerce major Flipkart is reportedly in talks to buy a stake in online ticketing site BookMyShow.

As reality sinks in for Hike, experts say it is perhaps a result of investor pressure. “(They) are asking for credible outcomes now, which is revenues and profits. A startup does have the habit of taking flights of fancy and use investor money, but now (they) need to focus on what really gets to money in terms of revenue,” said Sanchit Vir Gogia, chief analyst and CEO at Greyhound Research.

Nevertheless, this move should serve as a wake-up call for all Indian startups, experts believe. “It also reflects a lack of planning at the end of the startups in the name of innovation. Purely from that perspective, it requires startups that are in a decent shape right now to take a close look at their status,” Gogia said.

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Analyst:

Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, an award-winning global research & advisory firm. To read more about him, click here.

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