The founder and chief mentor of The Concept Labs, Kushagra Awasthi, offers some smart suggestions.
With an increase in entrepreneurs starting their own enterprises, India has recently become a hotbed for startups. Even though there is no shortage of talent or ideas, these businesses’ chances of success are frequently hampered by a lack of assistance and guidance. However, Indian businesses have the potential to become the global hub for unicorns with the correct mentoring.
What exactly is a unicorn business?
- A startup that is privately held and valued at more than $1 billion is called a unicorn company.
- Uber, Airbnb, and SpaceX are examples of well-known unicorn businesses.
- Only a few firms have attained unicorn status, which is extremely uncommon.
- More Indian firms might become unicorns if given the correct direction and assistance.
- Before diving into the significance of mentorship, it is crucial to comprehend what a unicorn firm is.
Indian startups’ condition right now
- Over 50,000 firms make up the third-largest startup ecosystem in the world, which is located in India.
- Despite the staggering amount, only a small proportion of Indian firms have become unicorns.
- There were just eight unicorns in India, according to the Nasscom report from 2018.
- By the end of 2020, there will be twenty-one unicorns.
- Since the investment pool is frequently small, Indian companies frequently struggle to find finance.
- Risk-averse investors are prevalent in India, where they favour investing in well-established businesses over start-ups.
The value of mentoring
*Mentorship gives companies the advice, resources, and support they need to flourish.
*A mentor links business owners with possible investors, helps them overcome obstacles, and offers insightful counsel.
*Mentorship can aid companies in avoiding frequent blunders and traps.
*A study by Startup Genome found that the lack of a market need for a company’s product or service is the main factor in the failure of 90% of companies.
*A mentor can assist entrepreneurs in finding a market that they can serve and in creating products or services to fill those requirements.
*Mentorship can assist startups in expanding their networks and forming connections with important figures in their sector.
*Startups seeking funding will find this to be especially helpful.
*Strong network companies are more likely to attract investors.
Mentorship’s effects on Indian startups
Mentorship has already assisted a number of entrepreneurs in India. Examples include Mohandas Pai, the former CFO of Infosys, who served as a mentor for Byju’s, one of India’s most successful edtech businesses. In addition to offering advice on strategy and business growth, Pai assisted Byju’s in securing investment.
Another such is the low-cost hotel company Oyo, which has shaken up the Indian hospitality sector. Ritesh Agarwal, the CEO and founder of Oyo, received mentoring from businessmen including Bejul Somaia, managing director of Lightspeed Venture Partners, and Sequoia Capital.
Furthermore, a number of organisations in India are attempting to mentor entrepreneurs. For instance, the Indian Angel Network is a network of angel investors that supports companies with money and mentoring. A number of startups have benefited from the assistance of The Network, including Druva, a cloud data management and protection company, and Stayzilla, an online marketplace for homestays and other lodging options.
The success of Indian companies is largely dependent on mentoring. Startups can successfully manage the difficulties of launching and expanding a company with the appropriate direction, and they can also build useful networks and relationships with influential figures in their sector. Despite the fact that India has previously given birth to a number of successful unicorns, there is still a long way to go before it achieves unicorn-producing perfection. However, with the assistance of seasoned mentors and institutions committed to provide mentorship and investment, Indian entrepreneurs can continue to develop and prosper and have a huge impact on the world startup ecosystem.