Tiger eats Flipkart: Indian startups must learn that funding always comes at a heavy cost

We see it in the movies plenty of times. I’m referring to spy agencies calling on their best personnel on a dead or alive mission to save the world, without the world knowing about him/her (think James Bond or Vin Diesel in XXX). Nobody’s saving the world here, but Tiger Global with a 35 percent stake, had to pull a few strings when co-founders Sachin and Binny Bansal did not seem to get the job done right. Recently-appointed Flipkart CEO, Kalyan Krishnamurthy seems like that specialist, a guy who comes with his special set of skills from the Lee Pixel army and knows the ins and outs of e-commerce like nobody else. In short, Krishnamurthy also becomes the first professional to take over the reins of an Indian startup.

Flipkart Co-founder Sachin Bansal will continue as executive chairman. Image credit: Flipkart website

Flipkart Co-founder Sachin Bansal will continue as executive chairman. Image credit: Flipkart website

Mint clearly points out how Tiger Global’s one-man army rescued Flipkart not once, but twice. But then came Amazon, and as Flipkart co-founder Sachin Bansal made evidently clear, the Indian e-commerce giant along with others did feel threatened. Everyone’s now looking at the government for support from foreign threats.

Funding can only take you so far. Keeping up with a giant like Amazon meant that Flipkart was bleeding money. It was laying off employees (which it denied) in the hundreds. Funds were soon marking down the Indian e-commerce company. Old habits die hard. This time, Flipkart needed a remedy and Krishnamurthy once again stepped into the arena fired top level executives and restored faith that the company can move on. In fact Flipkart did better than Amazon during the last festive season. A move that clearly showed that an Indian startup can out do an international player...

Updated Date: Jan 10, 2017 13:00 PM

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