.
Recommend a book "India Uninc." by R Vaidyanath. He beautifully explains why the Indian economy's backbone is SMEs and unorganized sector. TBH though, Flipkart has had way more impact than the other so called disrupters. Don't see any real value add by most of the Indian startups.
No real value??
Isn’t the FP OG of startups in India which paved way for many others? The platform on which you shared this comment is also a startup.
Yea, agree many fundamental flaws with the way founders operate but what made you think SMEs are clean. Go to any manufacturing unit near you and you will see human right violation at its peak.
Please read my comment properly😅. As I said, FP has had atleast some impact. Also, yes the book delves into challenges with SMEs as well. It's not perfect, but I guess rather than focusing on building tech giants, we should empower SMEs more.
Indian startups, unless bootstrapped, do not work towards profitability. They focus on scale and secondary. These VC funded companies do not represent the whole startup ecosystem. Check bootstrapped companies, there are many which are good and profitable.
What does it say, why do you care so much
Unlike many startups in India, FK is actually very well run with a lot of financial discipline. It is not profitable today as it has been focusing on both growth and profitability together along with a thousand other new things and doing well in most of the things baring 1-2. I think it can become a smaller scale but profitable company overnight if asked to but that’s not what is being chased.
FK profitability will come only at a particular scale. I would say, its not ecosystem problem but rather India as an economy has a decent but sustainable growth rate and not explosive growth like we saw in China and SEA.
It might take more time for FK to reach the scale they want. But once they turn profitable, near term PAT margin expansion will be humongous due to the operating leverage they have.
After 16 years of existence should we still call Flipkart a startup?
Few months ago, mama earth CEO compared it's losses with Amazon saying, "Amazon too made losses". Now Firstcry is IPO bound with their losses being 6x in 2023 and also justifoed it.
Amazon made a loss Because they invested all their p...
