How Long Startup Bubble Is Going To Survive In India?

In 2015 NASSACOM put India in top 5 worlds largest start-up communities. After the introduction of Start-up, Make -in-India and Stand-up-India this trend of entrepreneurship, self employment came in picture. India being hub of IT & Tech mind attracted a lot of investments in fact it was difficult for investors to resist investing in these micro and mini start up.

But we are actually doomed to see this bubble burst as most of the investors have overvalued these startups, a tinge of this can be felt as start up funding has plummeted to $583 million from its peak of $3 billion in 2015. We are about to see .com crash that we witnessed in 2000.

When did it start?
With expansion in economy, supportive govt. regulations, India has given pace to democratization of start-up space. Putting a new business idea into action is no longer limited to business clans only. Be it Flip-kart, Snap-deal, Paytm or OLA, these are all brainchild of persons who are 1st businessman in their family.No doubt this has opened door to a lucrative career option and have generated employment for many.

What went wrong?
Then where we went wrong and what we need to correct this?Answer of this is in the race of start-up culture most of the tech mind participated and investors invested. Most of the start-up are still trying to imitate trending startups without looking for scope in particular market. What they are doing is not contributing to the start-up ecosystem but saturating the space and eating the market share and dumping the excess investment. With intense tough competition in this limited space, most of the startups are spending profusely to attract more sells and profit in future. With investors lending money not on actual profit base but on speculative profit forecast. A forecast whose time and date is out of the boundary of forecast. Profit might even come for some but not for all. And when this investment wont give return there will be a harsh burst of bubble. That will be first of its kind in India.

Corrective measures
So its quite essential to understand the basics of entrepreneurship and an innovation that can lead to a start-up. First sustainability check that how a start-up can adapt quickly to changing demand, how easily it can improve its business model cut down work force and open to new opportunities.

Second innovation and Design thinking is something that is necessary. Also innovation doesn't mean having a separate working space its a process which involves thinking ,implementation and improvising as per social-economic need.

There are few who have started checking this viability of every start-up if rest others will follow this bubble burst will not be much painful.