The very basic definition of business is that “you make a profit”, if you can do that, it’s way better than most of the unicorns losing money with a bad business model. (ie: zomato, zepto, swiggy, ola)
List of Startup with a Bad business model, fund flow, and unicorn in India
- Zepto (18 YO Stanford Guy loses 390.3cr to make 142.3cr)
- OLA (IIT founder, Copied business model from uber)
- Byjus (Class by IITians)
- Zomato (IIT, Bad business model, brought from US, Grubhub)
- Swiggy (IIT Guys, Tough to match the price and fulfillment, brought from US, Grubhub)
- Vedantu (Learn by IIT, bad business signs, Overestimated edtech market in India)
- WhiteHatJr (Learn from IIT, sold dreams)
Good startups that became profitable and doing 100M+ in profit
- ZOHO (Bootstrapped, 100M+ profit, Business tech engine brought from outside, not built from scratch)
- ZERODHA (Bootstrapped, 1B+ revenue, 100M+ revenue)
Reason for failure:
- Business model
- Overestimated Market Size
- Investor Push to reach the next target numbers (so they can exit on a high valuation)
IIT was just a tag to get investors. If everyone was assuming the market in countries like India, common sense, and business core basics will continue to win.
If an IITian and a common have to assume and do business then I would not like to have an IIT degree a look stupid. I would rather be the common guy and look stupid, or maybe I would like to win my common sense of business.
Note: I appreciate the business they are in, but I wish to see their profit someday. I clearly don’t see that happening with their current business model. Despite having a bad business model, it has inspired thousands of people to start their own startups and show India’s strength. At worst, a lot of people got jobs. In this case, the rich became poorer, and the poor got jot to feed the family. Overall, a good execution with a bad business model. Everything is an opinion from my experience.
Think wise, think common business flow, and don’t get flabergasted because an IITian or Stanfordian or Elon musk is saying something.