Shutdowns. Funding crunch. Falling valuations. Firings. By pretty much any metric, India’s consumer internet companies have been going through a rough patch.
Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research, feels Silicon Valley is a way more mature ecosystem. “Indian entrepreneurs are doing great, but Silicon Valley has great mentors and the right kind of funding support to ensure that businesses are built, scaled and sold at the right time. It’s also about the maturity of the investor ecosystem.”
“Indian IT decision-makers are savvy—they just won’t buy licenses anymore as they have burnt their fingers with IT biggies. They are asking questions around RoI (return on investment). Revenues, outcomes, RoI…those are very hard questions nobody is prepared to answer,” Gogia explains.
“The differentiation between innovator founders and operation experts hasn’t been created here—startups still hire young IITians at fancy salaries, at positions they have no experience of. It’s important to understand that as an innovative founder, you need not be CEO anymore. Besides, those who were with the company when it started may not be needed when it is scaling up. Till that happens, we will have more sad stories coming up,” Gogia warns.