Down-round for Snapdeal. What does it mean to other start-ups ?

The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Bharat Sabnani, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur

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Snapdeal has had a poor last year with their losses increasing from Rs 1328 crore in 2014-15 to Rs 3316 crore in 2015-16. This in addition to the speculations from investors has resulted in down-round for Snapdeal. A down-round means a reduced valuation of the start-up compared to that of the previous round. This down-round can affect the investors sentiments and its founders but it can also reduce the short-term pressure that Snapdeal faces. The reduced valuation can actually lead to smart business practices and making the business sustainable.

Other emerging start-ups can also learn from this to focus on effective business models instead of short-run marketing gimmicks like deep discounts. The flow of money and investments are not infinite and the start-ups should keep this in mind. The aggressive funding will eventually come down and this will balance the current start-up ecosystem of India. This is just the start of down-round and all the start-ups should make it a point to make their businesses sustainable, so that they are not affected by the increase or decrease of their valuations.

Licious-A new startup in town

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Tamas Oberoi, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur

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Bangalore headquartered start-up Licious  is redefining the shopping-for-meat experience to address the perennial problem of customers of finding fresh, hygienic, delectable meat without distress.

The start-up has brought together all stages of fresh meat procurement, processing and delivery under one-roof – this is a first-of-its-kind online meat ordering platform that was some 6 months ago and is, according to the company, witnessing ‘rapid growth and positive customer feedback’.

It puts the power of choice back into the hands of customers by enabling them to easily customize and choose exactly what they need at guaranteed freshness as per industry standards..

Such a simple concept and solves a perennial problem of fresh meat at your doorstep in 90 minutes and that’s amazing for meat lovers.Wishthe startup would expand in pan India and India will come up with many more startups like this in near future.

Start-Ups in India

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Romit Tembhurne, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur


In India people are moving towards entrepreneurship. About 10000 companies are being registered yearly, according to GrowthEnabler, a virtual platform for advising and mentoring for start-ups. About 86% of these companies shut down within a year, as stated in Business Standard on 8th march, 2015. The main reasons for failure are access to capital, mentorship programme, availability for right tools and technology and the lack of knowledge to achieve break-even. GrowthEnabler has entered India to provide guidance to entrepreneurs and to give boost to India’s start-ups growth.

In an article published on 9th march by BS, focuses on women entrepreneurs in India. It states that about 18% of 140000 common service centers (CSC), Village level entrepreneurs (VLE) called by the government, are being run by women. Dinesh Kumar Tyagi, CEO of a CSC told BS that “……according to an independent study, women as VLEs are better compared to men in terms of managing/operating such centers.”

On 14th march, BS published that Indian entrepreneurs are trying to sell their products to US. These are mainly software products. It states that among these entrepreneurs, many were former employees of an MNC working with US and thus they have knowledge of things work there. According to Nasscom, 35% have been working with MNCs and 27% have worked in Indian Firms.

 

References:

http://www.business-standard.com/article/companies/enabling-indian-start-ups-to-grow-115030800610_1.html

http://www.business-standard.com/article/economy-policy/women-to-take-centre-stage-on-start-up-ideas-115030900006_1.html

http://www.business-standard.com/article/companies/indian-entrepreneurs-harbour-us-dreams-115031200797_1.html