Reality of Indian Startups

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India is often referred to as a land of startups and unicorns. A lot of Indian startups have even managed to raise crores of investment from investors.
But then, there is a flip side to this story as well- More and more startups in India can be seen laying off their employees and they are struggling to survive.
A study even showed that around 90% of Indian startups fail within the first 5 years.
But why is that? If India has such a huge market of around- 140 crore people and investors have so much faith in Indian startups, why are they struggling to survive?
This is what we are going to talk about in this video What ails the startups of India and what is the way out for them?

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Markers
00:00 Introduction
01:09 Overestimation of Market Size
01:36 Food and Grocery Delivery
03:27 E-commerce
07:15 Who Is Middle Class?
08:57 Problems of Overestimation
09:33 Technical Problems
10:35 Barrier to Entry
12:46 LTV/CAC Ratio
14:00 Funding Winter
14:42 Positives

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40 Comments

  1. Mohak bhai, waise to main aapke main channel par kaafi time se active hun lekin ye channel main abhi-abhi dekhna shuru kiya hai…
    Jaisa aapne bataya ki ki agar aapki family income 22,500 se 45,000 per annum hai to aap middle class hain india mein, and in other point you said ki tier-2 mein mostly middle class hi aata hai… To mera seedha sawal ye hai ki agar abhi filhaal mein india ki har family atleast 22,500 to kama hi leti hai per year, to maximum families middle class se hi belong karti hain… In that case, jo startups tier-2 cities ko target kar rhe hain wo fail kyu or kaise ho rhe?

  2. Paytms sound box isnt truly indian. I saw the same boxes for wechat payments back in 2016 in china.Paytms boxes are manufactured by a company called oakter their initial boxes were directly imported from china and assembled here even now 60%% of the components in the box are chinese including thier GPRS modem and processor.

  3. Some big issues:

    1. Lack of pride: I live overseas and I PROUDLY buy indian brands whenever I visit home. and yet when I see people there- they are CRAZY for international brands not realizing major international brands- buy premade stuff from india, put their logo on, sell you back at massive markups and indians buy it under the shadow of "OOOO AMERICAN BRANDS".

    2. Scams: As you mentioned heavy returns- So many greedy people buy something, use it, then return it. for the sake of using it for free…which honestly is disgusting.

    3. Vandalism: In smaller states where crime rate is high- Postman or local goons would steal ur stuff. I had to complain about this delivery guy- who kept replacing my branded amazon ordered gadgets with cheap stuff I and I had to keep complainig and returning. I wrote official letter to amazon india stating how indians businesses are losing money because of this thief- They DID NOTHING.

    4. Indians keep fighting intenral affairs- RATHER GREEDY POLITICIANS keep dividing people in the name of religion, that Rarely indians choose the party who is good in geopolitics which DIRECTLY impacts Country's GDP. Congress is guilty of it. they NEVER made a single decision which was geopolitically clever yet all their campaigns are based on division.

  4. I appreciate your research. Even though you are not a Commerce/Business student (I suppose) but you have explained this topic very well. For the first time I have heard someone pointing out that startups overestimate market size which was mentioned only by Mr. Kishore Biyani.

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