Out of 100 big startups in India, seventy-seven startups are currently launching IPOs even in loss, startups are winning, all are failing, startups have fired more than eight thousand people since January till now and there is a possibility that More than 60,000 people will be laid off in the coming time, but why is it happening like this, whenever we used to open the paper, we used to see the headlines, this startup got 500 crores, got 1000 crores today. Its interview was going on today in the startup world with all the pomp and show.
Why has there been complete silence, so in today’s blog, let’s discuss in detail whether the bubble of startup world is about to burst and if this bubble bursts, what will be its effect on our youth, what will be its effect on our existing business and as a citizen, what will be its effect on our life and how all these things happen, if a normal business goes into loss for a year, then the bank refuses to give loan, but after such a huge loss, who will give them thousands of crores of rupees? giving and why?
Today let’s take cover from all these things and start today’s case study.
Let’s start from the beginning, after all what is a business? What is the purpose of the business? Business means we made a product, we made a service, sold it, earn two money from it, after deducting the expenses, put back the profit and gradually we increased our business, this is how business is done to earn profit.
But then in our world startups came and said that I have come with a brand new product, I have come with a unique product, I have come with a unique service, but I wish that this uniqueness should reach as many people as possible, but this old one I went into the model that if I want to earn money and invest it, I will not be able to fail so soon, what to do?
Then the VC comes, the VC says in the scene, hey don’t get caught up in profit, want money, take money from me, you just reach out to as many people as possible as quickly as possible, earn money later and When the startup gets this much money, the startup says that you have to take your product to the public.
How to reach He said, there is no problem with profit, they do one thing to lure the public, to bring them to us leaving the things they are currently using, freebies, discounts, these things. That thing is slowly known about cashback and then the process of giving freebies starts like Ola says take free ride take discount Swiggy says first take delivery free discount and everyone discount discount discount Give regardless of profit.
Now the question comes that why VC is giving them money and what is the benefit of VC? How will he earn?
There are three ways of VC to earn money VC says first and easiest way slowly public will get used to these things public will forget old people and will start doing our thing and when public will get used to it, when The public will forget the taxi driver and will start sitting only in Ola, then surge pricing from the public and by charging here and there, then they will earn later, thinking that my money will be free later.
Second, they think that no problem, I invested ten crore rupees in this company, I took ten percent, after six months or a year, when the company will have grown a little more, I will sell it for twenty crores and go to some other big one.
The second VC option is Finding the Greater Fool. What happened to Greater Flowers? Greater flower means big fool, look, in the world of painting, in the world of antiques, those who are fond of buying and keep it, their point is different, the matter of tax planning is different, but those who work professionally, buy paintings thinking that today I bought this painting for two crores, someone will get a flower bigger than mine, will give it a pendant for four crores, the one who bought it for four, he takes it thinking that he will get someone with eight, will give it and as long as he gets a greater fool, that painting The value keeps on increasing, but the game ends on the day the fair is closed.
So they said the same thing, let’s see that we have invested money in a company, after two years a new investor will come, we will reduce our state a little, after two years the new investor will send it to someone else and slowly Slowly everyone will continue to earn their own profit and this technique worked a lot in the beginning, when the WhatsApp app was started, Sequoia had given six hundred million to WhatsApp, but after some time, when Facebook bought WhatsApp, three million i.e. from seven Fifty times the money in eight years.
So people understood that if the company becomes profitable, we will earn in loss. Flipkart was in such a huge loss, yet Walmart bought 1.5 lakh crores and when they bought it, they were the early investors of Flipkart and everyone enjoyed it. So people said that Flipkart was making less loss, yet its investors enjoyed it, because they got a greater share, Walmart, we will get someone, then everyone completely covered their heads and started funding new startups. Leaving the profit, leaving the loss, we said that we want the one which is the best for you, in which there is a possibility of becoming big, we will jump into that only.
The third way, if the bychance happen in such a way that neither profit came nor there was any greater profit, then there is no problem, we will come with IPO. If we will take our lion and go away with the exit, then it is our benefit and these people have invested a lot of money and that is why in a few years there have been many unicorns in our India. Everything is going well in me, then what is the problem, think about it, there is a problem in the ecosystem, listen carefully, all the three plans that were there, failed from the first line, so that if not today then tomorrow we will come in profit.
But it has been so many years that Oyo has said profit, it has been so many years that Ola has said that it has been so many years that Zomato has said that it has been so many years that it is not able to give profit even after so many years, one of the main reasons for this is our people, we told them to look.
The thing is, as long as you give a discount, we will take your product, as long as you give free, we will take it as soon as we ask for money, as soon as we charge, we are going back, we used to roam in Ola cool, but now Ola will take more, we will go back to auto We are asking for orders from Swiggy, but if we don’t give the discount, we will go and bring it ourselves.
Yes, the public goes away, so how can we earn, then profit is not coming from the first option, the second option comes that find a greater flower but a greater flower is not found, because those who were made to win have become those who have money.
They are saying that a little reception has started coming, here look at the condition of Sri Lanka, there look at the war between Russia and Ukraine, who knows if Taiwan might break out. It seems that the mood of the market is a little up and down, if money is invested, it will be given, if it does not come back, then these Greater Fools also stopped getting, then the money has dried up from there, now the last option has come, let’s bring Brahmastra IPO.
If Paytm came with IPO, on the first day it brought twenty-seven percent down policy in the market, it was a little up, but today it is also going down, the heroine was in plus on the first day, today it is also running in minus, so overall the Indian public has Rejected them outright that these people must have given you, you don’t earn profit, yet how can you move ahead in the market, the public showed them their real status, showed them their mirror and dropped their chair with a bang, the valuation went down. And everyone’s mind will not work even in the next IPO, then Swiggy was going to bring IPO, Oyo IPL was about to come, Ola was going to bring IPO, all three have taken a step back, so people are behaving very dirty in the market.
First of all, the youth of India does not know the whole game, only the youth of India reads the newspaper, they think that there is a lot of money in startups, they become rich overnight. If someone has become something from where he has become, then in today’s India, don’t do this job, sir, I will not do job. Will start leaving and asks the first question?
Where will the funding be found? I ask what is your idea, he says, idea will come, tell me about funding, I only have three or four ideas on which to get funding, if we work on the same idea, then in the eyes of the world or in the eyes of the Indian youth, it means a startup. Funding, which is a wrong notion, develop such a business, develop a startup that earns money, unless you take money from the customer, until you earn from the customer’s money, it will not work.
Second impact comes in small and medium traders in MSME sector, they have come to the shop, they have invested money from their pocket, they have taken loan money from the bank, they have to spend, they have to earn profit so that their house can run, there is a competition in front of them, a startup The one who is playing on the investor’s money, he has no tension to earn profit, he wants all the customers at any cost and is doing marketing all over the world, so sometimes our MSMEs lag behind in that race, so give them a message.
I would like you to have nothing to fear because whatever phase it is is temporary, until a startup comes along which is providing really great value and is actually making profits, then you have nothing to fear. There is no need, they will come for some time, they will make noise, they will do marketing, but they will disappear back.
Third is my appeal to the government, the most important thing is that the government has done a lot for startups, it has also declared due days for startups, it is very good that you are helping them to become unicorns, it is very good that the investment environment has been created in India, very good It’s a matter, but if you look at startups carefully, I am not sowing all startups, many startups work very well in India and if you look at some startups, they are saying that there is little regulation in India.
Successfully paid here, got the work done here, did not reduce here, went and got registered in Dubai that it would be a little less tax there, the headache of the government is a little less, many people, many big companies are registered in Singapore, so that we do not have to pay tax. Will have to pay in the name of employment, they defeat some people today, they fire them back after six months, there is no job security, they are not paying taxes in India, on the other hand, our MSMEs who live in India, the people of India.
Giving employment to, giving permanent employment, Paying tax to the people of India, contributing to India’s GDP and you are not making as much efforts for that as you have done for your startup community, so I have a request from the government as well that the attention you are giving to startups Yes, look I am not denying have great job but once it was on the side of our small businessmen see now I have a message venture done you are saying that we need money, we have to invest in some company like this If we can sell at a higher price after a year in a company, then it would be fun.
Even if you are not less, who has so much work in such a way that after packing a paneer tikka from the market, no one is developing a lot of value, then I believe that someone in these social startups should work on water. I am working on electricity, someone is working for the village, give funding to those startups, if you have to waste money, then do it, at least this money is being wasted, it will reach the right place and mine is like this It is believed that they are working on real education, they are working on real problems, then ultimately you will definitely get profit. This was the analysis of the entire startup ecosystem.
What is that for you, do tell me in the chat box.
We hope you loved our content for more such content like business case studies subscribe to our newsletters.
