Is the Indian startup ecosystem mature enough? This has been the main question that has been doing the rounds after the controversial resignation sent by Housing.com CEO Rahul Yadav to the company’s board members.
Yadav sent the letter stating “I don’t think you guys are intellectually capable enough to have any sensible discussion anymore.” Though the reply from the board was a formal one accepting his resignation, yet the above statement has triggered the mills in churning out whether the Indian startup ecosystem has gained enough maturity or is it still in its nascent stage.
Housing.com is a real estate website portal that deals with the selling and purchase of properties. It is being predicted that this would soon become a $1billion startup.
The actual scenario
However, the letter by Yadav has put a pause button on the startups and its first time entrepreneurs.
Most Indian startups are first time entrepreneurs who have very little or no experience in handling a company. This often leads to CEOs being incapable of running the business or clashes among the board members.
Often startups with great ideas are overtaken by bigger businesses. The main reason being that the Indian startup ecosystem has not gained the expertise to manage and continue an expanding business. Investors too create quite a pressure as they demand high returns for their investments on startups.
Though angel investors have come up for many startups providing valuable guidance with their long years of experience, these normally invest on startups that look the most promising among the lot. Hence many diligint ideas go in the back burners for lack of investments.
Favouritism and bureaucracy are dominant factors too. Blaming just the Indian startup ecosystem is not enough. Scopes are marred with rampant bureaucracy and favouritism.
Housing.com has also been in the news many a times, once for a newspaper ad that had cost them around $4 million. Just a couple of months back too, the company came in the limelight when two of its employees died in a car crash.
However, the scenario at Housing.com has made the world focus on the Indian startup scenario and the time it will take for the Indian startup ecosystem to mature.