The valuations have reached a bubble stage and are mostly inflated. The losses of the top 22 online start-ups in the country soared by 293% at Rs 7,884 crore for a combined revenue of Rs 16,199 crore for the financial year ended March 2015. Read the complete blog here: https://www.linkedin.com/pulse/tu-beer-hai-startup-bubble-bursting-khalid-raza?trk=prof-post

1. Tu Beer Hai – Startup Bubble is Bursting
khalidraza9.wordpress.com/2016/06/09/startup-bubble-is-bursting/
Disclaimer: I believe in the potential of startups and as a consumer of many of them (For example: Uber, Inshorts,
Flipkart, TinyOwl, Quikr, …and many more) I feel they have made a difference and are needed.
Yesterday I opened a nifty startup news app to read that Flipkart deferred (read declined) the joining of some very
glossy IIM A MBA grads , to whom they promised hefty packages (and created artificial talent wars). While I
understand that there is some internal structuring going on but a company which is leading the current e-commerce
scene, not only in terms of losses, really has not gotten its act together. In April, Puneet Soni, Flipkart’s Chief
Product Officer and expensive import from Silicon valley, left Flipkart within 14 months of joining.
Snapdeal and Flipkart have reported losses in financial year 2014-15. Snapdeal’s financial report revealed a loss
of Rs 1,328.01 crore. The highest loss reported last financial year was by Flipkart at Rs 2,000 crore.
2 days ago, Anand Chandrasekaran left Snapdeal. Anand, a former Yahoo executive, returned to India in 2014 to
run product for the carrier Bharti Airtel. He jumped to Snapdeal last June, and led an effort to integrate more
services, like Uber, into the company’s flagship app, a model similar to China’s popular WeChat.
3 days ago, Tiny Owl, another start up shut all his India operations, except Mumbai. Wonder why that was left. The
Mumbai-based company was operational in 11 cities, including Delhi-NCR, Bengaluru and Chennai, but will now
operate only in select areas of its home city. It laid off 160 employees in August. In November, it shut operations in
four cities — Pune, Delhi, Hyderabad, and Chennai, and laid off another 100 employees.
Housing.com, which is backed by SoftBank and witnessed a management change after founder Rahul Yadav was
evicted following a boardroom battle last year, posted a loss of Rs 279 crore on a revenue of Rs 12.7 crore, up from
Rs 48.9 crore in the previous year.
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2. Sulekha went to Rs 98.5 crore from Rs 80.9 crore, and AskMe’s revenues grew to Rs 43.4 crore from Rs 42.7
crore. Losses, however, went up massively, with Quikr and AskMe posting a combined loss of Rs 704.9 crore
during FY15, up from Rs 380.9 crore in the previous year.
Zomato, which posted revenue of Rs 96.7 crore during FY15 had an employee cost of Rs 130.3 crore, while
FoodPanda, with revenue of Rs 4.6 crore, had an employee cost of Rs 5 crore. Earlier this week, however, Zomato
said it has reached operational profitability in six markets, including India.
Uff, stop it! So whats now?
The startup bubble is bursting!
Let’s understand what I mean here: The valuations… read more
Tagged: flipkart, Flipkart loss in 2015, Flipkart Losses, Housing.com, IIM A, Inshorts, Puneet Soni, SnapDeal,
SoftBank, Startup, Startup Bubble, Startup bubble is bursting, Tinyowl, Tu Beer Hai, Uber, Zomato
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