Interesting comparison. Many Indian SMEs might be scaling rapidly due to speculative investments or inflated valuations without comparable innovations. Long-term sustainability might tell a different story.

Product Manager

Google had some crazy growth numbers and profit, which merited it's IPO Valuation. And yet, it has only(?) 76x since then.   Here, in India, we have shitty SME companies 50x in 35 years.  Signifies...

Welcome to Personal Finance's Private Community

Google had some crazy growth numbers and profit, which merited it's IPO Valuation. And yet, it has only(?) 76x since then. 

Here, in India, we have shitty SME companies 50x in 3-5 years.

Signifies the impact of entry valuation

Crazy numbers

Business Analyst

Crazy numbers- Grapevine

Welcome to Indian Startups's Private Community

Hero has revenue of Rs. 35,000 crore & profit of rs. 4000 crores.Ola Electric has revenue of Rs 373 crore and loss of Rs  784 crore... OLA Electric (OE) aims 7-8 Bn $ IPO Valuation while Hero has 10 Bn $ valuation

" but ola has innovation" , " kya matlab founder ke IIT se hone se valuation multiple jayada nhi hona chahiye" , " ola full indian saar. Support ola IPO saar. Lose your money while investors and founder make a lot saar" , " bro but ola founder ne Sanskrit waala chatgpt banaya hai. He sapports indian culture. So higher multiple to Banta hai" . 
  
  
 Prepare to hear this in coming days

Growth Manager

Software Engineer

There are essentially four parties in the startup economy:

1. The Consumer
2. The Enabler(read, Startup)
3. The Service Provider
4. The Investor

Now let's look at Game Theory motivations:

1. The Indian Consumer wants to minimise money spent per unit value extracted, the Western Consumer wants to maximise value extracted per unit money spent. (There's a massive difference.)

2. The Startup depending on the stage wants to maximise User Growth and Free Cash Flows.

3. The Service provider wants to maximise financial incentives.

4. The Investor is wants to maximise the XIRR of their fund. For this they need to reach a multibagger liquidity event.

Now let's look at what happens when:

1. The Consumer gets f'ed over: 

The startup attains pricing power through deep competitive moats allowing for monopolisation. They can jack up the prices to ensure nice FCF, greater rewards for Service Providers and great returns to their investors. (Think, Uber can charge anything to you now)

2. The Startup gets f'ed over: 

The users get bang for their buck, the service providers get good incentives, the investors push for higher growth but unfortunately the startup does not have enough capital to service their Cost of Operations through their unit economics, so they will either run out of cash or investor patience. Either ways, they are doomed. (Think every legit startup that failed)

3. The Service Provider get f'ed over: 

This is the likeliest scenario as they have the least power in this dynamic. Rewards will be reduced over time or made harder to achieve. They have no option because they got no option for sustenance. (Think any on-demand service providing app)

4. The investor gets f'ed over: 

Now imagine there is a startup that can balance the act very well. They have a service that users are willing to pay a margin on. They pay their service providers fairly and have decent unit economics. Now, the investor will do halla about destruction of shareholder value from little growth. (Is this the case with BluSmart?)

Maybe that's why building in India is tough.

[Rant] Here's why someone usually ends up f'ed over, for a startup to get successful in India

Welcome to Software Engineers's Private Community

Offer : E4 175k pounds
Current: L4 56 Lakhs
YoE: 1 year 7 months

Here's what I have considered:

- Living in London is going to be costly, on an avg I'll be saving 1.2x of India.
- Meta London created a bad reputation for itself when last year it laid off people from India just 2 days after joining
- it's not worth it going from L4 to E4, I probably should switch only when getting a higher level or a big big pay bump (this is probably not a big pay bump considering the cost of living)
- I am not very good at making friends, and I have quite some friends here now... I don't just want to leave everything and be alone in a new city so far away from home.

- the only pro point I see is that..  it is London.

Do you think I should reconsider my decision?

I have decided to reject Meta London offer

Dude, take risk. I know staying in Google looks like safety net but You might not be able to do adventures stuff later in life. Moving to a new country, new food, new culture. You WILL meet new people. Those things can’t be bought.

P.S. Not seeking directions, just some sane advice. I was in a murky situation with PNB a few years ago, and I successfully managed to accumulate and now they are doing handsomely!

Paytm stocks lying in my holdings, every time I successfully accumulate more to average out my price, something goes south and the stocks crash. I have patience, and can accumulate some more. Any sound advice?

Growth Marketer

Everyone wants Google's distribution, but no one wants to pay for it.

Everyone wants Google to stop doing what it's doing, but no one wants to invest in an alternative.

Alternatives, if any coming up, from India will be of cheap quality. Does anyone remember what happened to BharatOS, or what's happening with Krutrim. 

What these app developers are not realising is that, their business is more or less happening because Android as an OS is there. It's not just about play store. 

I wonder why they're not cribbing against the Apple app store. 

Could the rates be lower? Yes.
But what's in it for Google or Apple when that entire section of business is because of them?

No one is stopping anyone from building a new OS, a better one. As long as a good quality one is not coming up, everyone will have to rely on Google or Apple. 

It feels really bad when the founders try to make it a national issue as well 🤦🏻‍♂️

Oh, and even if a new OS comes up, I wonder how they're going to sustain it, plus make people choose that without the availability of other apps.

Rant about Google Play Store

Welcome to News Discussion's Private Community

- Deepinder Goyal has become a billionaire following a record rally in Zomato shares, which have surged over 300% since July 2023.
- Zomato's stock hit a new high of Rs230 on the BSE, boosting its market cap past Rs1.8 trillion and making Goyal India's richest professional manager with a net worth of Rs8,300 crore.
- The surge in stock is driven by expectations that Zomato's quick commerce business, Blinkit, will outperform peers and turn profitable sooner than anticipated.
- Analysts expect Blinkit to surpass Zomato's food delivery business in gross order value (GOV) and strengthen its market position, despite a longer path to sustainable EBITDA margins.
- Goldman Sachs values Blinkit at $13 billion, higher than Zomato's core food delivery business, predicting significant growth in GOV and EBITDA by FY29. 

 Source: Money Control

Zomato Founder-CEO Deepinder Goyal Joins Billionaire Club

One founder who truly inspires me!

- Founded Zomato in 2008 and was doing a completely different thing
- First business model failed. Did global expansion across many countries did not work out
- But created an excellent product: most reliable catalogue of restaurants and reviews
- Got into delivery after Swiggy and others
- Executes like a machine. Raised smaller rounds, cross Swiggy GMV, revenue, was first to get to unit profitability.
- BlinkIt acquisition
- Best startup IPO so far in India 

Truly the grit an entrepreneur must have. 16 years of building. It isn't easy, I am sure.

Corporate Strategist

Journalist

Let me down slowly 🎶

Translation of the image: Where our dreams comet true, their struggle begins

Not a meme if it hits this low 😢

Consultant

Sharechat raises 50M USD via Convertible Debentures from existing investors. The picture isn't as rosy as what it seems. Plus, twitter bio suggests that they are now positioning as an AI powered content platform? Welcome to the peak AI era. Time to jump off the AI bandwagon when normies start chanting AI AI AI.

Sharechat valuation slashed by 60% 🚨

OfBusiness, Oxyzo: Ruchi Kalra's husband Asish Mohapatra handles one company, Ruchi handles the other.

Meet Gurgaon woman with Rs 2600 crore net worth who built 2 firms worth Rs 52000 crore, IITian was rejected 73 times

Just 73 times? Oh IITian

It’s common knowledge that many millionaires were minted by IPOs ( likes of abnb, meta, coinbase ).

Are there examples of similar gains in the Indian startup ecosystem, for mere software engineers? Especially the companies that ipo’d on Indian markets.

Tech IPO millionaries of india

Google is sick 🤢 !! 700 million to fire people.

Product Designer

"I wonder how Jefferies has given a target price of Rs. 520/share on Mamaearh - on the listing day, it was already at 93.5 times EBITDA" -> Need more people like this on LinkedIn!

Byjus Valuation Sliced By 99% - Rasing a 200 million $ through rights issue at 250 million dollars

Krutrim has become a unicorn after securing $50m in funding, making it the first Indian AI startup with a valuation of $1bn. It seems like an extremely overvalued company being built yet again. Thoughts?

India's 1st Unicorn in 2024

Are we going back to good golden days of insane salaries. I am really curious on how was the valuation decided. On what basis? Did this platform earned a single penny yet.

Program Manager

Come at me, I'm not scared. There is a reason why FAANG engineers are top-rated VS some random startup engineer.

Here are the reasons why I think that Indian Startup culture is pure cringe:

1. The random use of the following emojis- 🚀💰📈📊💡
2. Fake enthusiasm for every little thing - "Wow! 25M people ordered condoms WOWOW!!!🚀"
3. Claim that you are a verb("company name"): "I am a (Zoman, Flipster, Swiggster or whatever)" but no one really knows about it outside of your company.
4. The HR is a proper softie in the name of Employee wellbeing but will end up being a sadist the moment layoffs happen.
5. Think hard if you really want to work in a place that is your LinkedIn feed on Steroids.

Indian startup culture is the cringiest thing ever

Bruh you high? 
 Have you not seen the infinite amount of cringe generated by so-called faang engineers on blind?  
 Startup or faang, shit is the same everywhere.

Founder

Link to article - https://techcrunch.com/2024/01/11/blackrock-cuts-byjus-valuation-by-95-to-1-billion/

What guarantee that Byju’s survives end of the year?

IPOs are getting crazy !!!

Unlike many times dick and harry startup founders who have gone crazy chasing Unicorn and decacorn tag with no numbers to back up the claim

Crazy numbers

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