Kanwal Rekhi, an Indian-American entrepreneur and venture capitalist who is honored to be the “first Indian-American founder & CEO to take a venture-backed company public on the NASDAQ,” criticized Flipkart for being the biggest and most foolish startup ever in India. In the video below, he says that the company hired people on very high pays and sold products below their cost. According to him, the company didn’t have any proper business model. The entrepreneurs alone are not to be blamed; the venture capitalists encouraged them to waste their money too!
He further explains why startups like Flipkart and Ola have to sell their shares in the secondary markets. He already knew that these startups were doomed to fail from day one. The entrepreneurs themselves didn’t believe in their companies which made them sell those shares.
Rekhi advises the government to let these companies fail. Letting them bail out will set a dangerous precedent for others.
What’s more interesting to know is that Yourstory has ranked Flipkart as the number one Indian startup for the year 2016 which seems to contradict the views of Rekhi.
Do you think Flipkart can be considered as a good startup ? Let me know in the comments, and I’ll add it in!