Startups like Hike Cred are gas balloons
One such company was Hike. Started by Sunil Mittals son this company raised money from softbank and was a unicorn in 2019 valued at 1.5 Billion only to shut down last month.
Another balloon that seems to be getting blown with gas is Cred (yeah those ada during IPL. Look at their financials below valued at 800 Million USD.
CRED spent Rs 727 to earn Re 1 in FY20
=> Expenses: Rs 378.4 Cr
=> Operating revenue: Rs 52 lakh
=> Losses: Rs 360.31 Cr
=> Expenses: Rs 64 Cr
=> Operating revenue: Nil
=> Losses: Rs 60.87 Cr
Like this startup India will loose credibility. Attached are their mahan investors. God bless the pension funds that fund them. more
1. Startups are Lottery Tickets, buy 100 and 1 may be a winner which will cover the losses from the other 99 ... Of 100 Investments made by any Fund, 75 lose their entire Investment, 20 recover their Investment without any profit, 4 give 100 - 300% returns per annum and 1 gives more 1000% returns per annum, making the whole 100 Investments collectively profitable by 30 - 45% per annum.
2. As an Investor, the VC believes that the Company will be able to raise additional rounds at enhanced valuation within the next 24 - 36 months - This is the foundation of any VC's Investment and the current Investor is the most effective fund raiser for the Company. more
Today, when there is an avenue to do the same in our country itself, why not set up a Startup company and continue stashing? In fact, even if its a looting business, the law will see it as a Legitimate Loot. As long as the Government runs for Big Corporates, such sleazy joints will rise. more
It is a common trend in India that non serious enterpreneur raise the fund & create assets & then after enjoying the facilities shut dowm the enterprise with legal dispute this is a valid reason for unutilised desputed commercial land even cities like kanpur carries around 20% unutilised commercial land centerally located which can be developed as beautiful housing projects for all categeories. more