Walmart acquiring Flipkart’s 77% stake for $16 billion created quite the buzz last week. Some welcomed the news, some had apprehensions, others outrightly protested it. Some blamed the government’s lack of startup support which lead to this acquisition thereby killing the possibilities of any “Alibabas” to be born in India. But I beg to differ. This deal has been probably the BIGGEST news of this decade for startup decade and here’s why:
Strengthening Indian Startup Ecosystem – Flipkart had been the poster boy of Indian startup scene. I would go as far to say that a lot of entrepreneurs actually started because of the motivation they got from seeing the Flipkart story. And in the worst case if this phoenix would have had a fall, the startup scene would have not just got gangrenous, it would have probably died. The biggest torchbearer definitely needed an exit to send a wave of confidence in the entrepreneurial fabric and it did so well.
Building Entrepreneurial Faith back - Today a lot of entrepreneurs risk and start ventures in industries which are almost unimaginable for traditional businessmen. Flipkart was one such venture. Building e-commerce at a time, when internet penetration was not as much; people were skeptic of buying online; investors were wary; consumers were confused and renowned businessmen were condemning the industry. With Flipkart’s exit, a lot of entrepreneurs who are daring to dream the toughest odd ventures definitely get a boost of confidence.
Motivation for Employees – Startups cannot offer handsome packages as some of the MNCs can. The Flipkart deal says NO. A lot of early employees stand to make a fortune from the deal. Even the loyal employees who joined Flipkart at relatively later stages and ex-employees stand to make quite a good sum from the deal. The lesson here is for employees entering other startups. Don’t worry if you can’t get a fat paycheck today. Your esop is not just paper money.So here’s a cheers to the poster boy who became the Indian startup superhero!
For any queries, please feel free to reach out to me on Rajeev@Tbsplanet.com
Rajeev is Founder, TBS Planet Comics, ex-IITR Silver Medalist.
The writer is the founder of TBS Planet Comics. He is ex-Flipkart, Xiaomi employee, and IIT-R Silver medalist.