Gravitas Plus: Why are Indian Startups struggling?

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Is India's Startup boom slowing down? From Byju's to Ola to Meesho, Unicorns in Indiaare on a firing spree. They're revising their growth projections & executing cost-cutting measures. Why? What went wrong? Priyanka Sharma explains on Gravitas Plus.

#indianstartup #unicorns #gravitasplus

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Well honestly, Nykaa, Paytm, Zomato, Cartrade didn't 'lose' valuations at the stock market. They got listed at an obscene valuation which was not at all sustainable and has no base or fundamental to it. The market just showed its true value and hence the fall. This will again continue till the time it actually becomes stable on its 'actual' valuation. Moreover, there is the talk of actually earning 'profits', as stocks don't rise just without any basis. Ultimately, the companies need to post good earnings to grow!

ivy
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Many of these start ups, especially byjus have unnaturally hyped their valuations to unrealistic numbers. That is one of the big factors

ayushdesai-dakle
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Byjus layed off 2500 employees within a month 😑
And
On the other hand, hiring Lionel Messi for global embassador 🤡

possible
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How the hell is Ola, Byju... still a startup??? They are in the game for more than a decade.

They are not startups, they are just failed business models pretending to be a startups to justify their cash-burns.

riscnx
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Indian start-ups are just like the Indian economy, based on the availability of cheap credit aka debt. Once that's gone, party's over baby

YanYuan
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Wow! Tell it like it is! This was a brilliant analysis, with spot-on examples of the problem areas. And it is not just India, as many other countries were spoiled by the good years - now it is get tough or die... 😢

gilbertfranklin
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It’s time to think about the reason of having very less patents in a country of billions.
This is the root cause also people in india are mainly focusing on financial stability and no worries on research and development.

Key areas of research and development to be focussed and encourage such

manukuttan
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Another major issue with starting a company or business is the corruption within the government offices and officials

topin.
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Indian startups, as I observed, essentially don't create any value - they just pass of the money of investors' to discounts and promotions for acquisition. There is no value created, there is only value passed and looking for the next round. This is pathetic!

randyborkmann
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Real innovation instead of copying old ideas would have helped them.

thedestroyerclass
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Too much dependence on US and UK markets is the primary reason!

archer
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Time stamp:- 7:04, Fact Correction : India's rank has been improved in Global Innovation Index 2022 and it has been ranked at 40 as compared to 46th in last year index.

NarutoUzumaki-myny
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Did Byju not sponsor every other cricket tournament and player? Increasing tuition fees for school children?

bmmr
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It's a global world and war has started global recession and de-globalization. Developing economies stand to gain more from globalization, that is how China rose so fast, but Russia has changed the game, and while most from India celebrate this change, few realize the calamity this can bring to the Indian economy.

zionen
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The year 2022 in itself has been extremely tough with the rising global inflation, the after effects of covid and energy crisis. Many global companies are also facing quite tough conditions. Though, these conditions cannot explain the firing by these startup’s but startup’s are not the only companies facing issues.

komalsinghvi
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Now just started the layoffs..Next Wednesday onwards meta also layoff..specially for Indians also December mid more companies can layoff before Christmas 🎄

dadirama
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What is meaning of Startups .
The video the general public have never understand it .
Anchor Prianka Sharma feel the general public are intelligent to understand it .
Before Anchor Prianka Sharma looks like Hollywood actress now she her dress look like Bollywood actress .

ajitpani
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@5:41 These 2 graphs tell you a lot!

While FDI into Indian startups shrink, the FDI into other Asian startups rise. The reason is the investment actually come from the SAME pool of investors.

The BIGGEST INVESTORS BY FAR for startups in Asia are the Chinese.

Almost all the Indian startup founders (especially the earlier ones) used to travel to Beijing, Shanghai and Shenzhen for venture capital, rather than to Silicon Valley.

But all these policies by Modi targeting Chinese investments in the last few years have scared away the Chinese. These include policies that don't name China by name but are clearly targeted at the Chinese.

Plus on top of that, all the non-stop hate speech online targeting anything Chinese further frightens potential investors.

I personally know of a former colleague now working for a company in China which wanted to invest in India a few years ago but held back because of the toxic environment for Chinese investment in India.

The company eventually invested in Indonesia instead. These are investment that could have gone to India.

ChinaSongsCollection
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Every country has problems. Yesterday, significant number of companies have laid off their employees to tackle the recession in the US. This is happening due to several issues across the Globe. So, in a sense, it is not happening in India only. The fact is in the west you won't get lots of information on jobs cut compared to east. And, that is sad reality considering the current situation.

satyakide
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I faced layoff on 2008. Then on 2018.

Recession happens every decade. But this time it will be mass layoffs than ever before. Save money and refrain from EMI lifestyle. Stick to basic requirements alone.

yuvarajvelmuruganmudaliyar