The startup world is fast-paced and success often seems assured for such experienced executives who start their own ventures. However, recent events suggest otherwise and reveals what can be called the “Career Bullwhip Effect” in India’s startup scene.
Swiggy’s former senior vice president Karthik Gurumurthy exemplified the phenomenon. He left Swiggy late last year and thereafter secured $3 million from investors to launch Convenio. His vision was to come up with a low-cost chain of physical stores similar to that of Aldi, which is highly successful in Europe. However, he lately returned the capital to investors and halted his ambitious plans.
The same is the story of Myntra’s former CEO Amar Nagaram. His fashion venture Virgio raised about $40 million and mainly focused on circular fashion to promote sustainability. Virgio too faced challenges. It led to the returning of investor capital along with a buyback of shares to optimize the capital structure.
Both the cases highlight a crucial aspect of the startup world. It means that prior success and industry experience do not guarantee a seamless transition to new entrepreneurial ventures. Both the experts encountered unforeseen hurdles. Their experience and initial funding could not surmount the hurdles.
The phenomenon now is raising a compelling question. It is being asked that why do seasoned executives struggle to replicate their success in new ventures. Deep industry knowledge and extensive networks provide a good foundation, but volatility of startup ecosystem and rapidly shifting market dynamics led to falter of ideas.
Moreover, the assumptions driving investment decisions may not always hold true. Investors often back these leaders with a belief that their previous achievements will lead to new successes. However, the market is unpredictable and consumer behavior can be challenging to anticipate perfectly.
