20/12/2016
2016
And our third and final reflection - of unicorns and more....
2015 and 2016 have been the years when faith in the unicorns began to falter. Just consider the word ‘unicorn’ for a moment. Isn’t it somewhat comical that wall street honchos and white collar investors alike would believe in things that are as closely related to a fairy tale character as ever? And a fairy tale it was, with company valuations touching billions and trillions. Especially well-known is the case of Flipkart, a company that went on to raise several series of funding, only to lose their trust just as suddenly. It then proceeded to roll-back offers it made to the top management students in the country, thus destroying the faith of aspirants and veterans alike on what a unicorn really means.
Where are the days of a simple, soundproof business model that may or may not be valued in billions, but paid its employees on time and found a solid purpose in the market?
In fact, hundreds and thousands of such companies, with their roots firmly planted in the ground, continue to flourish and thrive in India. They may not be very well-known, but in the race for popularity, how much are these other startups writing off in losses? It isn’t pleasant to think of these things, but it is essential we do so. A billion-dollar startup isn’t perhaps what people should aspire to build, a solid business is.
That said, we can never deny the difference that disruptors such as Uber, Ola, Swiggy and PayTM have made to our lives. Perhaps, wisdom lies in investing in a solid business model as opposed to projections and click-through rates.