Skip to player
Skip to main content
Skip to footer
Search
Connect
Watch fullscreen
Like
Comments
Bookmark
Share
Add to Playlist
Report
Decoding India's Startup Ecosystem | NDTV Profit
NDTV Profit
Follow
2/5/2024
The #startup landscape in India is expanding rapidly, but the key concern remains: How successful and sustainable are these ventures?
Here's Mallica Mishra with the answer.
For the latest news and updates, visit: ndtvprofit.com
Category
📺
TV
Transcript
Display full video transcript
00:00
Hello and welcome to NDTV Profit.
00:03
Last week, the government announced the interim budget and its intention to make India a developed
00:07
nation by 2047.
00:09
While the road to being a developed country involves many imperative factors at play,
00:15
the startup industry is one space that has been significantly contributing to the country's
00:20
robust economy.
00:22
The startup ecosystem at present in India comprises 111 unicorns with a combined valuation
00:28
of nearly $350 billion.
00:32
This number is expected to multiply in the coming years as we turn from a developing
00:37
to a developed nation.
00:39
But there is a question.
00:41
How successful and sustainable are these startups?
00:45
Are there lessons to learn from their hits and misses?
00:48
We have some solid examples of damage to doubt, the potential and strength of this space.
00:56
Number one, let's consider the case of Vijay Shekhar Sharma's Paytm.
01:01
The company's questionable practices include onboarding customers without proper KYC, associating
01:07
thousands of customers with a single PAN, and maintaining multiple dormant accounts
01:13
ostensibly for potential money laundering.
01:16
As a result, regulatory crackdowns have led to a staggering $2 billion worth of erosion
01:23
in investor wealth in just two days.
01:26
Paytm stocks are plummeting, affecting millions of investors.
01:31
The Paytm IPO, originally priced in the range of Rs. 2080 to 2150, now trades at just Rs.
01:42
487.
01:44
Another example is the once-celebrated Edtech company, Byjuice.
01:47
In a few short years, the company's valuation skyrocketed from $1 billion in 2018 to an
01:54
astounding $22 billion by 2022, fueled by aggressive expansion strategies and relentless
02:01
acquisitions.
02:02
However, as the company poured millions into marketing campaigns, including the high-profile
02:08
signing of Lionel Messi as a brand ambassador, concerns regarding financial practices and
02:14
governance surfaced.
02:17
Investors complained of subpar products and services, while employees suffered in a toxic
02:21
work environment.
02:23
The absence of required financial statements further raised doubts about the company's
02:28
true worth.
02:30
The valuation has now plummeted by nearly 99%, leaving marquee investors in despair.
02:38
Next we have Bharatpay.
02:39
Bharatpay filed a criminal complaint with the Economic Offences Wing in 2022, citing
02:46
17 accounts, including embezzlement, forgery, and criminal breach of trust.
02:52
Accusations included the Grover family raising fake invoices with initial invoices from five
02:59
firms linked to Grover's family, allegedly siphoning off funds from the fintech company
03:05
for fictitious recruitment services.
03:09
Registered addresses of all eight alleged HR firms belonged to family members.
03:16
Approximately Rs 7.6 crore was found credited to these firms, despite them not assisting
03:23
in recruiting any employees.
03:25
A 2,800-page civil suit unveiled a web of fake bills and misappropriation of company
03:32
funds for personal use.
03:35
Madhuri Jain, Ashne Grover's wife and the former head of controls at Bharatpay, approved
03:41
payments totalling Rs 72 crore to 30 third-party vendors who allegedly provided no real services
03:49
or goods to the company.
03:52
Furthermore, contracts for office renovation were awarded to Jain's own interior design
03:57
firm, Mauve and Brown, without proper disclosure.
04:02
The company also covered personal trips for the Grover family to foreign locations, sometimes
04:08
even paying twice for the same trip through different agencies.
04:14
Inflating books was another trick employed by startup firm Go Mechanic.
04:19
Amit Bhasin, co-founder of the automobile after-sales service startup, admitted to errors
04:25
in financial reporting leading to a forensic audit and a significant restructuring that
04:30
saw 70% of the 1,000-odd workforce being laid off.
04:35
Almost two years after securing a massive $42 million in funding, it was revealed that
04:42
Go Mechanic had manipulated its financial records to inflate revenue numbers.
04:49
A conflict of interest was seemingly bypassed when online food delivery platform, Zomato,
04:54
acquired the quick commerce grocery delivery platform, Blinkit, for Rs 4,447 crore in an
05:02
all-stock deal.
05:03
This acquisition raised concerns as Zomato's balance sheet appeared ill-suited for such
05:08
a move.
05:09
Furthermore, Albinder Dhinsa, the CEO of Blinkit, previously held a key role in Zomato and is
05:18
the spouse of Zomato's co-founder and former CFO, Akriti Chopra.
05:23
The lessons for all of us are clear.
05:26
Not everything that glitters is gold.
05:29
Regulators must exercise vigilance not only in the listed space but also with unlisted
05:35
companies that attract billions of dollars from prominent investors.
05:40
After all, the reputation of India as an investment destination is at stake.
05:44
[Music]
Recommended
2:22
|
Up next
Startup vs Big Companies: Should You Work At A Startup? Startup Mantra| Good Returns
Goodreturns
12/19/2022
8:01
Piyush Goyal slams Indian startups, urges to shift focus from food delivery apps
India Today
4/4/2025
13:13
Startups Fire Back After Goyal’s ‘Dukaandari’ Dig | Oneindia Captures Voices from India’s Capital
Oneindia
4/5/2025
39:02
Investing Mistakes You Must Avoid| Investment Tips| House of Alpha | Startup Mantra | Good Returns
Goodreturns
12/24/2022
29:52
Aashish Bhardwaj ने कैसे बनाया लाखों Youtubers को successful | Sociopool | GoodReturns
Goodreturns
7/1/2023
2:39
Three Startup Stars From India
Brut India
4/18/2025
2:13
Sunil Rongala said a big thing on the success of UPI
IANS INDIA
8/29/2024
16:34
Hope to see a revolution where entrepreneurs solve problems for rural India: Gururaj Deshpande
Deccan Herald
2/3/2023
21:01
How HealthTech start-ups powering the future of Healthcare in India| Breathe Well-Being| GoodReturns
Goodreturns
2/4/2023
2:13
Five Technology Startups to Watch Out for in 2018
BNO News
10/25/2018
13:21
Startup Street | Flix Announces Plan To Enter India, To Begin Operations In 2024
NDTV Profit
5/29/2023
2:43
Google’s Sundar Pichai Unveils Digital Unlocked For Indian Small Businesses
ET NOW
1/6/2017
3:01
Gujarat: Leading India’s Start-up Revolution
ANI
5/17/2025
1:13:28
Ashish Kumar on Funding AI Startups in India | Escape Velocity
OutlookIndia
4/14/2025
24:16
Watch PM Modi's IIM-Sambalpur speech
India Today
1/2/2021
16:57
Layoffs and more Layoffs – Why is the Government Silent?| WHAT DOES THIS DATA SAY | EP79 | IT Jobs
HW News English
2/5/2023
38:18
₹5000 से खड़ी की Drone Company| Shark Tank में ₹75 लाख की मिली Funding| insideFPV| Good Returns
Goodreturns
1/28/2023
2:44
Sinclair CEO Chris Ripley Praises India’s Media Landscape at Waves Summit 2025
ANI
5/2/2025
22:09
India Inc. - Interview with Harish Bahl - NewsX
NewsX
3/1/2019
23:01
UPI and the financial revolution in India
The Indian Express
10/27/2022
3:35
Fund for Indian entrepreneurs to get RM30mil boost, says Ramanan
The Star
4/3/2024
12:25
Pakistan Ki 1st Startup Company MyTM Ne 60 Million Ki Investment Lekar Ke Dubai Me Tahalka Macha Dia
UrduPoint.com
3/11/2022
10:10
No income tax for 3 years for startups: PM
NewsNation
5/15/2020
28:31
Beauty Product From Donkey Milk | गधी के दूध से प्रोडक्ट्स बनाने के लिए छोड़ी सरकारी जॉब|GoodReturns
Goodreturns
6/17/2023
5:23
MYStartup: One-stop platform for all things startup launched
The Star
4/23/2024