Flipkart boss warns startups of turmoil, funding crunch for another 12-18 months TechCrunch


Kalyan Krishnamurthy, CEO of e-commerce giant Flipkart, warned executives that the startup ecosystem’s funding winter could last for another 12 to 18 months, and the industry might have to face “a lot of turbulence and volatility.”

“This is going to be tough next year. In my estimation, a lot of startup founders will hit the market around April-June next year, and this is the moment of truth for the ecosystem,” he said at a meeting organized by India’s Economic Times over the weekend.

Usually a reserved and soft-spoken executive, Krishnamurthy told hundreds of attendees that startup founders should adopt a landing policy and restructure their companies. Many startup founders are not Willing to cut the hair of their previous reviews Says investors in the new financing deliberations.

Some startup founders believe they will not be able to attract and retain talent if a financing event suddenly makes employees’ existing equity less valuable.

“In 2001, companies saw a two- to six-fold valuation spike with some underlying growth and profitability assumptions for the next two to three years. I think it quickly became clear that these assumptions It will not be implemented.”

emerging Indian companies It raised a record $39 billion in 2021 Investors were looking aggressively at the multiplier in emerging markets. In contrast, where the market held its position earlier this year, financing declined in the September-ending quarter It fell to less than $3 billion.

He said it meant introspection about what needed to be done to survive.

Krishnamurthy, who previously worked at investment shop Tiger Global, helped architect Flipkart cut its workforce by 30% five years ago to help the company become more efficient. “We’ve grown out of there,” he said, “so it’s not a problem.”

Wal-Mart-owned Flipkart, finally with a value of $37.6 billion, it froze hiring earlier this year and halted its acquisition spree, which earlier saw it spend about half a billion dollars expanding into the online healthcare and travel categories. The company — which includes SoftBank, Tiger Global, GIC, Canada Pension Plan Investment Board, Qatar Investment Authority, Tencent and Franklin Templeton among its backers — does not plan to go public for at least a year.



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