The Indian startup ecosystem is poised to grow 2.2X to reach over 10,500 startups by 2020 as per a recent report by NASSCOM. The rising exposure to the Internet, technology, favorable government policies, foreign funding, and legacy businesses that are now a decade-old and nurturing entrepreneurship in the country are all helping this cause.
This has led to a trend similar to the Paypal Mafia. Apart from the many Indian startup Mafias like Redbus, Burrp, Taxiforsure, Flipkart, and Zoho, Flipkart takes the numero uno place. It has spawned more than 200 startups until now like Navi technologies, Phonepe, Udaan, Cure.fit, Suki, Runnr, Exotel, Playment, Grabonrent, xto10xtechnologies among others and looks good to inspire the next generation of startup founders.
Lets deep dive into how Flipkart managed such a feat.
Flipkart is one of the largest Internet next gen companies to be established in recent times, with a workforce of 30,000, it attracts unique people in its fold- someone who is audacious in their thinking , has entrepreneurial nature and is a very good problem-solver.
A pioneer in the e-commerce space, it gives its employees an outstanding education in how e-commerce is developing, how the industry is getting shaped. The insights help flipsters avoid future pitfalls and they can easily spot opportunities for startup. With an open culture – focussed on strength of the argument, logic, and idea and not seniority, this experience comes handy while running a tech startup.
Flipsters (Flipkart employees) take on responsibilities bigger than their designations and experiences. As a result, they become confident of their abilities to create value. Initiative-taking is recognized and rewarded. The startup has shared ownership with employees far more than Indian startups still do – and this two-way ownership street is the core of Flipkart’s culture.
Another undeniable factor was the coming together of IIT and IIM students at Flipkart. They work in pivotal roles in product management, design, marketing and their expertise makes them capable of understanding entrepreneurship, hold problem-solving capabilities. All of this together enabled them to fearlessly start their own businesses.
The third factor could be the #StartupIndia an initiative from the Government of India. which led to the numerous startup launches across the nation. This #StartupIndia push helped India’s nascent startup ecosystem gain prominence on the global map.
Another reason could be reducing the number of procedures and time-frame of incorporation by the Indian government. The ex-Flipsters are backed by almost all the marquee investors currently active in India including the likes of IDG Ventures, SAIF Partners, Accel Partners, Blume Ventures, Sequoia Capital, Lightspeed Ventures among others.
With over $400 million capital raised by Flipsters so far, investors have a huge trust in them and also results in lower rate of shutdowns experienced by these founders, as opposed to the 90-10 startup rule.
Flipkart Mafia is yet to scale the heights compared to the famous Paypal Mafia, but slowly but surely it is getting there.