Founded in 2011, TaxiForSure was one of the early entrants in the cab aggregator space. A few years and a $44-million in funding later, it was acquired by rival OLA for $200 million. Both founders exited just months later.
In an interview with Pradeesh Chandran, one of its co-founders - Aprameya Radhakrishna - now an angel investor and founder, Vokal India - shares his thoughts on kicking-off a company from the ground-up. Excerpts:
Could you tell us what an aspiring founder should keep in mind?
Before starting a venture, an entrepreneur should try to find solutions for a deep pain-point. The solution to the problem needs to be 10 times better than anything else that exists in the market. Building a great core team which you can trust and one that is execution-oriented is the most important thing in creating a any new organisation.
How difficult is raising funds? What factors should one look at?
Retaining users and a strong word of mouth signifies a good product-market fit. This, married with fast growth, would attract any investor.
How important is doing due diligence?
You can always hire a good professional lawyer to guide you around this. Talking to other co-founders to get an idea of important terms is vital, so that you don’t sign any known founder-unfriendly clauses.
What should one consider before exiting a venture?
A venture is successfully sold when you don’t really want to.
How important is culture to an organisation?
Culture is extremely important. For an early stage startup, the culture should focus on execution, speed, and results. Everything else will fall in place with that.
How critical is valuation?
How large or small your valuation is, is a reflection of the interest the venture has. More people eyeing to invest or buy will always result in the best valuation for the company.
How did you feel when you decided to exit TFS?
We exited TaxiForSure with a positive outcome for all stakeholders involved - investors, employees, drivers, and founders. This is the primary objective once you have raised external money. We were happy that we could be part of a journey that resulted in a good outcome for all stakeholders.
How painful or emotional was the process?
We were slightly emotional during the sale. But, you learn to look beyond and now, we are happy we have been able to explore many other opportunities.