While many startups are struggling to survive or folding due to lack of funding, Rajesh Mago, CEO of travel company Make My Trip, said there is enough capital available for the ‘right’ startups. Mago made this comment while talking to the newspaper’s Chief Content Editor Suveen Sinha during Business Standard Manthan 2024 (BS Manthan). Giving advice to aspiring entrepreneurs, Mago said it is important to focus on the long term when starting a business.
He said, ‘Anyone who is considering starting a business cannot think in terms of 2 years, 3 years, 5 years or 20 years. The idea of 3, 5 or 10 years is for investors. They have to invest the money, they have to look at the withdrawal period. But this is not the case for the management or the team of founders.
He said, ‘Lack of money has become a popular word at the moment. But if you ask me how much cash we have in the system, I will say that there is no dearth of money for the right people.
Describing the current stage of the startup as one of necessary reforms, he said that its overdue adjustment is not happening yet and whatever is happening is good. He said that this was certain for a long time because people were getting large amounts of money easily and very few questions were being asked.
Mago said, ‘People were excited to see India as a big opportunity. It is there but at the same time they are also leaving. It is possible that he may have been careless before giving the huge amount. I don’t think it was good, this approach did not do the founders any good.
He said that positive changes are now taking place and scrutiny is being done while taking investment decisions. CEO of MakeMyTrip said, ‘Now the formal work has increased. In such a situation, if you pass all the tests and you are a serious founder, think long term and your product is good then there is no question of not getting funding.
In 2023, Indian startups received the least amount of funding compared to the last 5 years and it was around $10 billion. According to data from data intelligence platform Traxon, $25 billion came in 2022.
First Published – March 28, 2024 | 9:19 PM IST
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