IN LATE FEBRUARY this year, Anirudh Damani, Managing Partner at Artha Venture Fund, sent out a message on the WhatsApp group he shares with the founders of his investee companies, predicting “a tough winter lasting for two to three quarters”. The advice was sound and it spoke of conserving cash, and if a company was close to raising funds, “the deal had to finish quickly”. For at least eight years, the flow of money into India’s start-ups saw no abatement, leading to astronomical valuations, often without a robust business model. Damani, who runs an early-stage thematic micro-venture capital (VC) fund, says the indicators were clear much before he sent the missive. “There has to be a collaborative relationship between the investors and the founders with high levels of transparency,” he says.
While all this would sound obvious, the real challenge in several start-ups has been the inability to sustain the frenetic pace of growth. Pressure from investors, coupled with promoters’ unbridled ambition to hit unicorn status at any cost, has led to poor decision-making. This is the point where anything goes, which lays the ground for corporate governance coming apart. In short, it comes down to business practices being compromised. In the recent past, one has seen a serious eruption of this in various forms at BharatPe, Trell and Zilingo, with an apprehension that many more will follow. It is a tough situation to be in and a few (but large) rotten apples can quite effortlessly play havoc with an industry that, in many ways, is an indication of India’s vast talent pool.
GROW, GROW, GROW
Diese Geschichte stammt aus der September 04, 2022-Ausgabe von Business Today India.
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Diese Geschichte stammt aus der September 04, 2022-Ausgabe von Business Today India.
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DE-RISKING THE BOOKS
INDIAN BANKS ARE BEGINNING TO TAKE BABY STEPS TOWARDS ADDRESSING CLIMATE-RELATED FINANCIAL RISKS IN THEIR BOOKS. BUT THEY MUST PUT THEIR FOOT ON THE PEDAL AND ENHANCE PREPAREDNESS
PAYING FOR CHANGE
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BEYOND THE BLIP
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BANDHAN AT A CROSSROADS
THE BELEAGUERED LENDER, LED BY CHANDRA SHEKHAR GHOSH, HAS FACED A HOST OF CHALLENGES IN RECENT TIMES. IT HAS READIED A BLUEPRINT TO DEAL WITH THEM. BUT WILL IT SUCCEED WITHOUT GHOSH AT THE HELM?
RESULT AND REPERCUSSIONS
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D-STREET ANGELS
FACED WITH A DEARTH OF PURE-PLAY THEMES IN THE SECONDARY MARKETS, SEASONED INVESTORS LIKE VIJAY KEDIA, MUKUL MAHAVIR AGRAWAL, AND THE JHUNJHUNWALAS HAVE TRAINED THEIR SIGHTS ON THE START-UP
A Man of Multitudes
IN A NEW BOOK, CAPTAINS OF INDIA INC. AND OTHERS PAY TRIBUTE TO RAHUL BAJAJ, THE TITAN OF INDIAN INDUSTRY
HOUSE OF THE RISING SUN
WITH THE GOVERNMENT OFFERING SUBSIDIES UNDER THE PM SURYA GHAR MUFT BIJLI YOJANA, MANY HOUSEHOLDS HAVE TAKEN A SHINE TO SOLAR ROOFTOP PANELS. BUT HOW MUCH DO THEY COST?
FROM GREY TO GREEN
WITH THE CLIMATE CRISIS BECOMING MORE ACUTE, GREEN HYDROGEN COULD BE AN IMPORTANT SOLUTION
ECO CHAMBER
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