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90% startups are hopeless, they are not going anywhere: Biyani
NEW DELHI: Stating that startups are “hopeless” and 90% of them “are not going anywhere”, Future Group CEO Kishore Biyani on Wednesday said they have been made to
NEW DELHI: Stating that startups are “hopeless” and 90% of them “are not going anywhere”, Future Group CEO Kishore Biyani on Wednesday said they have been made to look attractive only through daily full-page ads on newspapers.
“It is not viable to run an e-commerce company today”, he added.
Insisting that the startups must work on a bigger canvas, he said at the current state these new ventures would be too small to create the number of jobs which India requires.
“I think 90% startups are not going anywhere. They are hopeless...In the next three-four years, revenues of these companies would not be more than Rs 3,000 crore to Rs 4,000 crore.”
These companies are all funded by venture capitalists. “After two to three rounds of funding, 80% shares are gone”, which are then are sold to some corporate houses.
“Startup people should now think big, they should work on bigger canvas. All are very bright and talented people, so the canvas has to be larger. Let us take Ola. The revenues would not be more than ₹3,500 crore. They are not creating any new economy. They just meet people’s need to commute from point A to point B.”
“Consumption, which is going to drive the growth of the country and manufacturing might create the jobs and startups would be too small to create the number of jobs which we require.”
Biyani’s Future Group bought online furniture seller FabFurnish.com in April, his first acquisition of an Internet store. His listed retail companies, Future Retail Ltd, Future Lifestyle Fashions Ltd and Future Consumer Enterprise Ltd, come under the Future Group umbrella.
