Reality of Indian Startups

India is often referred to as a land of startups and unicorns. A lot of Indian startups have even managed to raise crores of investment from investors.
But then, there is a flip side to this story as well- More and more startups in India can be seen laying off their employees and they are struggling to survive.
A study even showed that around 90% of Indian startups fail within the first 5 years.
But why is that? If India has such a huge market of around- 140 crore people and investors have so much faith in Indian startups, why are they struggling to survive?
This is what we are going to talk about in this video What ails the startups of India and what is the way out for them?

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Markers
00:00 Introduction
01:09 Overestimation of Market Size
01:36 Food and Grocery Delivery
03:27 E-commerce
07:15 Who Is Middle Class?
08:57 Problems of Overestimation
09:33 Technical Problems
10:35 Barrier to Entry
12:46 LTV/CAC Ratio
14:00 Funding Winter
14:42 Positives

[mohak_mangal]

At 7:43, it should be monthly family income and not annual! Sorry, for my mistake ❤

[arunodaybhattacharjee]

The biggest problem is zero innovation in Indian startups most working in the same saturated spaces of ecommerce, delivery, education. Even most fintech ones are neobanks or payment portals. We need more innovative business models and solutions to actual problems in India, not ideas copied from the west.

[AbhishekKumar-zqnb]

I often feel Indian Start-ups are more IT oriented. I understand that India's success story is closely linked with IT, but we should not forget pharma, biotech and agro industry (india can be the world leader in the last). New innovative start ups which bring new ideas, and not just copy paste from West, can diversify the indian start up sector.

[shreyasingh]

I think another reason is that startups in India are not oriented to solve an existing problem, but come in as a convenience or luxury. Home delivery was a need during Covid, so these apps made profits. It became a luxury afterwards with all the delivery charges, so the slowdown of the profits for these apps.

[PositivelyPresent]

I am one of the customers who has returned many items on Meesho. I ordered a green bag, and they sent a blue one. They always do this. There is always a difference between a product that’s shown on the app and the real product that is received. If they could fix this problem, Meesho could really compete with Amazon or Flipkart.

[dhavalchheda]

Issue is with the whole system. Government rarely supports research on basic science which keeps us dependent on other countries and worst is we aren't able to capitalize on talent like other countries.

[nirmanprasad]

I was looking at how much money a big startup spend to earn 1 rupee and i got to know that cred spends 732 rupees to earn 1 rupee🤯🤯🤯🤯 and physicswallah spend 0.44 rupee to earn 1 rupee

[tanmoynag]

As an employee in one of the startups mentioned in the video, I 100% agree on the overestimating the market. Right now we are facing problems like pressure from investors, extending work hours, etc. Almost all of these companies are trying to maximise short term profits rather than long term sustainability.

[tula__]

I 100% agree with you. Everyday I’m bombarded with ads and hoardings everywhere, from mails, whatsapp to sms. I always think “I would have bought your service but I myself don’t have money”. Some many graduates are going for basic jobs like clerk, bank PO, railway clerk, superintendent. And their success rate is around 0.3%. Imagine, if India has so much unemployment then who’s gonna buy these services. Either give everyone job and make the start up/ make in India boom, or don’t give jobs and suffer economic slowdown. It is a continuous cycle. One cannot exist without other.

[ashishkumawat]

The general issue is that Indian startups are solving problems that aren't there in the first place... especially in tier 2 and 3 regions

[e.sanoop]

A decade ago, Entrepreneurs and owners of startups were very serious and passionate about their business and were ready to patiently wait for few years to turn profitable but todays entrepreneurs, business owners and especially their investors expect everything to be profitable instantaneously and hence there is pressure on showing higher sales volumes irrespective of the quality of a product or service, this takes away the focus from actually innovating something and presenting anything which is hugely profitable in the near short term. This is causing startup failures and the resulting layoffs etc.

[himansusekhar]

A major issue in the ecosystem is the tussle between Value and Valuation. Almost every startup begins its journey by adding some value in the life of customers and eventually increasing its valuation. But later, after a couple of fund raising rounds, it just becomes a game of valuation. Even the cofounders start planning their exits, as if they don't want to take the botheration any more.

[knack]

This is what I like about this channel, it is data dirven and Mohak doesn't disrespect it's viewers by spoon feeding simple worthless content. This is one of the best Indian Channel on youtube.

[rounakmandal]

It's true that a lot of startups are not making much profit, but they are contributing a lot to the society by providing employment, valuable services, products and empowering consumers to a greater extent. Companies like Ola, Rapido, swiggy, Zomato, phonepe, Flipkart, Unacademy, etc are providing valuable services to consumers and making their life easier. They are also learning from their mistakes and with time a lot of the startups will become profitable and provide the investors with greater return on investment.

[FrOsTerOP]

I am a distributor in Mumbai.
My business is not growing at that rate as before because of online market.
Please promote local retailers too if people simply promote online market we will have no employment our entire chain will vanish.

Please make a video on this issue.
It’s very serious

[mayursinhsarvaiya]

I love the way you collect, gather and combine data and information and the way you represent it 🤟🏻

[nikkhilkalia]

WOW! The way you de-jargonised, and explained the entire issue at hand is highly commendable. Most writers and analysts needlessly use complicated language.

As someone who has been following the Indian start up scene, I loved this simple explainer!

[anxiouslycurly]

Alot of grocery stores nowadays offer home delivery if you have their phone number. They dont charge much or anything for that sake for this service and most people tend to know them personally hence ordering from them is much more cost efficient than ordering from swiggy/bb as they charge sometimes as high as 100 rs for deliveries. About other goods that can be ordered online there is always the problem with quality as majority of products seem to have a low quality hrnce buying from actual store is better (also the concept of shopping itself is quite therapeutic)

[clashwithahmed]

I am from rural area . But more than 60% of villager's monthly income is ₹25000. Because of our villager's support local shop not online products.

[kadarkhan]

Marvelous information and program brother. Hatts off