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Ronnie Screwvala: No funding winter for startups with real business models

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2 years ago

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There is no funding winter for startups and unicorns with great and real business models and for those building organisations to outlast all others, according to Ronnie Screwvala, Co-Founder and Chairperson of higher education platform upGrad.

In an interaction with Screwvala said that even today, there are investments being closed daily across multiple sectors, as the world faces a great deal of uncertainty over multiple macro-economic factors.

Here are the excerpts from the interview:

Q: How do you look at the current wave of ‘funding winter’ in India?

A: I am always amused to hear this phrase ‘funding winter’, heard it so often in the last 15 years. I always thought only God was responsible for the multiple seasons we enjoy each year but of late, the private equity (PE) investor community is taking that place with their own patent on seasons.

Summer is when you bask in your own self-made glory, excesses and intoxication of hyper valuations, where no one is accountable and everyone is told to make hay while the sun shines.

Monsoon (unique to India) is a realisation that when ‘it rains it pours’ — good or bad.

Then, of course, is Winter, the time to re-write the same 50-page presentation that in summer months said exactly the opposite — the time to reverse the same intoxication of fund raise, valuations and hyper so-called growth with ‘one time’ write downs and blame the whole world, war, inflation and more, that was lurking around the whole summer but no one wanted to put their glasses on.

Seriously though, there is no funding winter for companies with great and real business models and for those building organisations to outlast all others. Even today there are investments being closed daily across multiple sectors — maybe not with the maverick investors who may be.

Let’s face it, the markets have corrected 10-12 per cent, that’s it. Overall, it is still way higher than pre-Covid and if you look, many companies are at their all-time high. This is also the best time for real businesses and mature founders not inflated with valuations to go out there.

Every company worth its value has to go through multiple seasons, over and over again, and the right ones grow and mature from that.

Also in Winter, the most elegant of snow leopards come out to hunt and be predators, and so Winter is the time for those who want to build to outlast and who want to be predators.

Q: The edtech sector is witnessing layoffs. Is this because funding dried up or there is more to it?

A: There is absolutely no ‘dry spell’. Just because a few handful of start-ups got crazily funded, made them lose all focus, pushed to grow and diversify are now being forced by those same investors to wake up and smell the coffee, does not mean there is any dry spell.

They were misguided by themselves and their Board and now are correcting themselves, unfortunately at the cost of valued working colleagues, but they are the exception, not the trend at all.

Never in a 100 years of education and ‘LifeLongLearning’ has there been a more opportune time to disrupt scale and include millions of college learners and working professionals to re-invent, re-skill and get onto a new growth path in their careers. India is also placed brilliantly to open up the higher education market in Asia and around the world.

We, at upGrad, have stayed away from the hubris of distraction and focused on outcomes and impacting careers.

Let there be no mistake, there is no better time than now. K12 went through its Covid bump and it is now seeing much needed correction, but the majority of companies in edtech are just getting started.

Q: How do you look at the global macroeconomic conditions that have engulfed economies the world over?

There were some interesting themes across the three days at the World Economic Forum (WEF) at Davos. Here are some takeaways:

A) Those who were questioning the end of globalisation had not really spent enough time defining what that meant in the first place, before sounding the death knell on it. Globalisation is here to stay as the world consumer wants it that way. An 18-year-old Zayda in Bangladesh wants to own an Apple iPhone and the 22-year-old Amari in Zambia wants to graduate from a UK university.

While the world leaders have in their own way created barriers, through war or threats of war and more insular growth, the seven billion+ people on this planet will not let that happen and globalisation will prevail.

B) There is a reskilling revolution that is happening and will be a tsunami over the next decade across the world. Better education and lifelong learning — accessible and affordable to all — digitally can and will add a massive $8 trillion to the global GDP in this decade. Power shifts in countries will take place based on the workforce and their population being ready for the jobs of tomorrow and also be the learning capitals of the world.

C) India also has the place and the position to be the new voice of global leadership — largest democracy, fastest growing economy and a world leader with clarity, conviction and an agenda to put it at the centre-stage in the world.

D) There is no doubt that the world is going to pass through a very, very challenging time. With food being disproportionately available to countries around the world, the poor will get poorer even if the rich do not get richer. Covid is not leaving the planet in a hurry but has got us all hyper alert on health enough to take notice of even Monkeypox – something that was prevalent in Africa for years but ever since it hit the “western” world.

And the war is not going away in a hurry and it will be interesting to see how engaged the West stays as the war prolongs or will they lose interest if it does not serve their agendas.

The big question we also need to track is how polarised the world will get in the next two-three years. All of this will call for incredible world leaders and leadership in politics and in building business and organisations.

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Business

Bharat NCAP Awards 5-Star Crash Test Rating to Mahindra Thar Roxx

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2 days ago

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November 15, 2024

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The Mahindra Thar Roxx has earned a prestigious 5-star rating in Bharat NCAP’s latest crash tests, reflecting its commitment to safety. Recently evaluated under stringent testing, the SUV excelled with a 31.09 out of 32 score for adult occupant protection and 45 out of 49 for child safety.

Tested in its AX5L and MX3 variants, the Mahindra Thar Roxx delivered notable results, scoring 15.09 out of 16 in the Frontal Offset test and a perfect 16 out of 16 in the Side Impact test. The assessment revealed strong protection for most areas, with adequate ratings for the driver’s chest and lower legs.

The Mahindra Thar Roxx has received high marks for child occupant safety, scoring 24 points in Bharat NCAP tests, along with 12 points for CRS (Child Restraint System) installation and a Vehicle Assessment Score of 9. This top-tier safety rating applies to all Thar Roxx units produced from November 2024 onward, underscoring Mahindra’s dedication to enhancing safety features across its SUV range. Additionally, Mahindra’s XUV400 and 3XO models have also achieved 5-star safety ratings, further emphasizing the automaker’s commitment to robust safety standards.

The Mahindra Thar Roxx offers two interior themes – Classic Ivory and a new Dark Mocha Brown. Comfort and convenience are prioritizing with ventilated seats, leatherette upholstery, a digital driver display, a larger 10.25-inch touchscreen, a high-quality Harmon Kardon sound system, a panoramic sunroof, rear AC vents, wireless connectivity for Apple CarPlay and Android Auto, and a six-way adjustable driver’s seat, combining practicality with luxury.

Mahindra Thar 5-door comes packed with safety and interior upgrades to enhance its appeal. On the safety side, it includes essentials like six airbags, three-point seatbelts for all occupants, hill control features, electronic stability control, and a seatbelt reminder. Advanced driver-assist features, such as autonomous emergency braking, adaptive cruise control, lane-keeping support, lane departure alerts, and a 360-degree camera system with blind spot monitoring, add an extra layer of protection.

Mahindra Thar Roxx offers two engine choices: a 2.0-litre turbo-petrol and a 2.2-litre diesel. The petrol engine comes in two setups—150 bhp and 330 Nm of torque for the manual, and 174 bhp with 380 Nm for the automatic. The diesel option is available only with four-wheel drive.

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Business

Why The Indian Stock Market Struggled: Inflation, FPI Outflows, And Currency Pressure; Everything You Need To Know

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3 days ago

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November 13, 2024

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The Indian stock market on Wednesday (November 13) wrapped the another challenging day, marking the fifth consecutive session of losses.

The Sensex and Nifty, the two benchmark indices, both ended lower amid concerns over inflation and a broad selloff in metal stocks.

Market Snapshot

By the close of the trading session, Sensex was down by 984.23 points, or 1.25 per cent, ending at 77,690.95. Nifty 50 followed suit, shedding 324.40 points, or 1.36 per cent, to settle at 23,559.05.

The day saw a sea of red on both the Sensex and Nifty, with the majority of stocks ending lower. Among the few gainers were NTPC, Tata Motors, and Infosys, which saw minor upticks on BSE.

However, the broader market was dominated by heavy losses, especially in stocks such as JSW Steel, State Bank of India (SBI), Adani Ports, Mahindra & Mahindra (M&M), and Tata Steel, all of which posted declines.

Reasons behind the sharp decline

One of the major factor contributing to the market’s downward trajectory is the growing concern related to inflation.

As per the data which released by the Ministry of statistics and Programme Implementation regarding the India’ retail inflation, it showed that for the month of October, it surged to 6.21 per cent, breaching the Reserve Bank of India’s (RBI) upper tolerance limit of 6 per cent for the first time in over a year. The primary factors that contributed to surge include rise food prices, driven by the extended monsoon season and crop damage.

Adding to the pressure is the continued outflow of foreign portfolio investments (FPIs). On November 12, FPIs sold shares worth Rs 364.35 crore, bringing the total outflows for November to Rs 23,911 crore

The Indian rupee also struggled on November 13, weakening by 1 paisa to close at 84.38 against the US dollar.

The rise of the US dollar, which surged 1.8 per cent in November, has been exacerbated by the US presidential election result and higher bond yields. The US 10-year bond yield spiked to 4.42 per cent, further diverting capital away from emerging markets like India.

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Business

Trump Victory Revives The Crypto Mania; Bitcoin Touches 81,000 Mark, Other Virtual Currencies Also Surge

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5 days ago

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November 11, 2024

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The world of cryptocurrency, which was enduring its long-drawn-out winter since the end of the pandemic, appears all set to come out of its ‘haitus’.

And this new surge has been powered by the recent triumph of Donald Trump at the 2024 US election. The president-elect, Donald Trump, who once thought that crypto was a ‘scam’, has come a long way. Donald Trump, by all means, is the most crypto-friendly president that the US has had so far.

Bitcoin

As a result of this newborn optimism, major names in the crypto business. The biggest of them all, Bitcoin, saw the biggest jump. Bitcoin scaled the USD 80,000 mark for the first time.

In the past 5 days, the cryptocurrency has surged in value by 7.76 per cent or USD 5,865.47, taking the overall value to 81,456.88 for one USD. In the Indian context, one Bitcoin is worth Rs 68,72,585.50.

Ethereum

And it is not just Bitcoin that has seen its value gallop. The second biggest name in the crypto world, Ethereum has observed a rise in its price since Trump’s victory. 8.71

In fact, this crypto has seen an even bigger jump of 17.00 per cent or USD 462.66, in the past 5 days, taking the overall value to USD 3,184.54.

Ripple

Another cryptocoin, Ripple, has also seen its prices rise. In the past 5 days alone, the value of this digital currency has jumped to USD 0.59.

This came to pass after an 8.71 per cent USD 0.05 rise in its value.

Dogecoin

The meme coin or a currency that was started as a joke, Dogecoin or ‘Dog Coin’ also saw a gargantuan rise in its prices. Just in the past 5 days, Dogecoin jumped in value by a substantial 49.76 per cent.

The price increased by USD 8.24, taking the overall value to USD 24.80. It is to be noted that Tesla boss Elon Musk, who is a close ally of Donald Trump, is a major proponent of this cryptocurrency.

One of the controversial policies that Trump has advocated throughout his campaign is weakening the US Dollar and loosening any scope of scrutiny on cryptocurrency. In fact, it is even reported that he would ‘fire’ the Security Exchange Commission chair, Gary Gensler. Gensler has been at the forefront of attempts to regulate cryptos.

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