Losing focus on core biz can lead to failure

Indian startups need to stabilise, mature and establish success of their business model before attempting to expand globally. Leave alone startups not having successful global presence, even matured and established companies from India has very limited global presence

Q. Many startup founders are investing in other startups. Is it useful for a startup to raise funds from founders of other startups? - Mahesh, Bengaluru

A. For startups to fund other startups, they must be flushed with funds. Why should a startup fund other startups? I can understand a startup acquiring or partnering with others as a part of their strategic growth plan, but in any other scenario, it can showcase lack of focus and fiscal discipline.

Byjus is a classic example of how losing focus on one's core business can lead to failure of the prime venture.

Q. What are the challenges being faced by the women-led startups today? I was told women entrepreneurs will face more scrutiny while raising funds for a startup. How far this is true? - Shailaja, Hyderabad

A. While it's important that there shouldn't be gender discrimination in the startup ecosystem, there are disproportionately less startups founded by women. There could be many social reasons for this situation. To mitigate this issue, women founders must partner with strong and qualified professionals, especially while pitching for funds.

Q. Not many Indian startups are going global. Is there any specific reason for this? Pls throw some light on this. - Surender, Bengaluru

A. Indian startups need to stabilise, mature and establish success of their business model before attempting to expand globally. Leave alone startups not having successful global presence, even matured and established companies from India has very limited global presence. Lack of system orientation, process-backed operations and habitual cronyism has limited Indian businesses’ global growth.