Page 23 - Top 10 India's Financial Startup 2019

and marketing.

#4 Lack of market understanding:

For startups to thrive and flourish, they must have a clear understanding of the market
they operate in and problems and opportunity gaps that exist in that market. For instance,
streaming platforms providing local content in India thrive today owing to the availability of
low-priced mobile data and increasing smartphone user base among the masses. If such
platforms were launched 10 years ago, they might have simply shut shop. This means a deep
understanding of market conditions and timing are crucial for success.
#5 Lack of talent and competency:

Another major factor contributing to startup failure has been their lack of talent and their
overall competency being poor. This is either because they were not able to attract the right
talent owing to their frugal resources and inability to pay higher remuneration or that the
founding team did not realize in time that they were lacking on certain competencies and skills
and that they must hire the right talent.
#6 Lack of funding and/or follow-on funding:

Several startups were forced to shut shop owing to their inability to raise sufficient
investments or follow-on funding. This has been the case especially with startups in industries
such as logistics and supply chain, social impact, clean energy, etc. where the industry itself
is poorly funded or investors focus narrowly on certain sub-segments of the industry owing to
their lack of awareness of several high-potential grassroots innovations in other areas.

Critical lessons to learn from failed Indian startups

• Failure, we believe, is a part of success. Learning from our own mistakes as well as
mistakes made by others is crucial to ensure success.
• Innovation is key to the success and sustenance of Indian startups. Startups need to
leverage tech talent, positive government initiatives and the growing pool of ecosystem
enablers and mentors to innovate and solve for India and make India a leader rather
than a follower.

• Business and revenue models make or break startups and they need to focus as much
on these as their ideas and their products.

• Copying solutions and models from successful startups/ businesses abroad will
eventually lead to startup failure, if they are not customized to the Indian market and
business context.
• A product/ solution should never be launched without adequate, sound and objective
market research. Overestimation of market needs and/or underestimation of
competitors will only prove detrimental to the startup.

• Startups must be willing to pivot at the right time so as to evolve and sustain
themselves in the dynamic business and market environment.
• The founding team must understand their strengths and weaknesses faster and
accordingly, onboard experts (including legal consultants) and mentors to ensure they
are not wasting precious resources and time.