The e-commerce sector has grown in triple digits, and some very good companies have come up and developed fast,” points out Deep Kalra, chairman and group CEO of MakeMyTrip. One can argue that some of this growth has come from access to capital, but the industry has its share of examples where despite sufficient funds, companies have not been able to grow to a place where they deal in tens of thousands of transactions on a daily basis. “It is very easy to spend money on peripherals instead of focusing on 'executing on scale'. Execution on scale can only happen when you have a solid grasp on technology, automation and have a great platform,” says Kalra, adding, “I am a big fan of 'executing at scale'. We need to give credit to companies that have been able to do it.”
In response to a question on the role of being an angel investor —an interest Kalra is known to have explored— he confesses that it is an area he has “not yet cracked”. He says, “It probably began as herd mentality and I realised much later that it was not sustainable. I recently read an article on investors frowning upon founders turning investors. I understand and agree with it now. That being said, I have no regrets — some of the ventures I invested in, did very well, but I was not being honest to myself. Eventually, I relied on an angel fund to represent me.”
He explains that best mentoring happens when there is no investment involved, because then, there is no bias. But that is the worst kind of investor from a startup's point of view. In investing, the right balance must be struck.
Lessons LearnedKalra advises companies to be nimble and humble, and to accept the fact that they can be wrong. He encourages young e-commerce players to take advice from everyone, and reiterates that some Indian entrepreneurs compete with the best in the world. He talks about the ethos he followed while making investing decisions, and the focus that MakeMyTrip has brought into its product and its mobile offers for its own growth.
Kalra also singles out innovations on mobile and payment structures as the big leap. Another area where he expects Indian entrepreneurs to learn their lessons from is the design aspect. “In most areas, Indian entrepreneurs compete aggressively with their global counterparts. But design appreciation, which eventually is about better product experience, is still in its infancy in India. That is the reason why Uber was not born here. That being said, we have Paytm, Rivigo and Grofers here that I see as game-changers,” insists Kalra.
One question that haunts many Indian business leaders is why India has not produced a world-class product and services company yet. There are examples like Indigo and other services, but the industry is changing, where it is reaching critical mass, and some changes will be seen on this front.
“In many ways, India is having it hard, at least in comparison to markets like China. China had protection. Baidu could not have happened if others were allowed. Then there is language barrier and protectionism. This does not take away from the fact that companies such as Alibaba and Tencent have had amazing vision. India has had it tough. Sometimes we argue with regulatory bodies to at least create a level-playing field as Indian companies are unable to do all things that foreign brands can. But that should bring out the best in us,” concludes Kalra.
noor.warsia@digitalmarket.asia
