You can be on Entrepreneur’s cover!

Aiming a bite of the Startup pie 'Different startups have different business models it's incorrect to club them as one.'

By Punita Sabharwal

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Rajesh Sawhney, Founder, GSF Accelerator, and Co-founder, InnerChef

Rajesh Sawhney, Founder, GSF Accelerator, and Co-founder, InnerChef shares his perspectives on the current startup momentum both as an investor and entrepreneur.

Is there any specific business model that startups should have?

Different startups have different business models it's incorrect to club them as one. Whenever an industry grows, there will be a lot of startups which will start and inevitably some startups will shut down. It's in the nature of the venture business. Nature of startups is that 90 percent of startups will shut down.

That's how businesses are. Three years back, there was no company that had $1 billion valuation, there are 10 now. If you look at another five years there will be another 10 companies. Look at organized retail. It is 10-15 years old. All of them are bleeding losses. So why is that model superior to online? Some businesses have long-term gestation period. They take time to go to a profitable stage. As long as they are growing it's good.

There will be failures on the way. But it's all right. That's how this game is played. As a nation we should celebrate failures. We are at a very early stage of a very long cycle of tech investing. This is not the time to panic. It's time to invest.

Startups live in a very Darwinian world. They live from one funding cycle to another funding cycle. I think there are enough jobs for the people in the economy. People can find new jobs. I think there will be some startups that will shut down and this is inevitable. There will be layoffs it's alright.

It happens in all industries. They do shut down. Second is the manner in which these things are handled by the management team. I think that's where it could be more sophisticated and mature. And in a country like ours we need to deal with it with more sensitivity.

Do you think investors are patient enough to wait for the long haul?

There has been lot of venture investing in India but not many exits. That's one of the problems. This shows they are patient and more money is coming in. I don't think patience of investors is a problem. Nature of the market is such that it takes a little longer to scale the market to IPO. We are where China was 10 years back. Currently there are 10 companies that can do IPO. Depending on the market situation, next two-three years could see those IPOs.

In the last five years, Indian consumers have become habituated of discounts. It has got to beat a stage where consumer is not waiting for discounts. Having said that I think India is a very value-conscious market. I don't see discounts coming down in immediate future. I think they will taper off in the long-term as consumers become more sophisticated and mature.

Punita Sabharwal

Entrepreneur Staff

Managing Editor, Entrepreneur India

Side Hustle

This Dad Started a Side Hustle to Save for His Daughter's College Fund — Then It Earned $1 Million and Caught Apple's Attention

In 2015, Greg Kerr, now owner of Alchemy Merch, was working as musician when he noticed a lucrative opportunity.

Business News

This Futuristic Wearable Smartphone Alternative Projects a Screen on Your Palm — And It's Now Widely Available

Humane's Ai Pin fastens magnetically to clothing and becomes a voice-activated AI assistant that can make calls, send texts, take notes, and find answers to complex questions.


The Unseen Reason You Feel So Overwhelmed — and How It Impacts Your Business

Feelings of tiredness and exhaustion are on the rise. Here are a few tips to combat the symptoms within your own business to boost productivity and employee morale.

Cryptocurrency / Blockchain

From Idea to Lucrative Side Hustle — Why Bitcoin ATMs Are the Future of Currency Exchange

Bitcoin ATMs present a lucrative opportunity — the market is projected to grow to $16.85 billion by 2033.

Starting a Business

Ask Co-Founder of Netflix Marc Randolph Anything: How to Watch

How to watch the new live streaming episode of 'Ask Marc' on April 11th at 2 PM ET.