It may be difficult for startup founders to raise funds at attractive valuations in the coming months as there is a severe capital crunch in the market. Industry players believe that there will be a period where consumers can delay purchase decisions and startups will have to look for alternative opportunities for business.
According to a PTI report, in a joint event with Meta, formerly known as Facebook, Vani Kola, founder and managing director of Kalaari Capital, said on Wednesday that customers can defer their buying decisions and start up Founders will need to tighten their belts and look for alternative opportunities for business.
According to Kola, there’s going to be a phase when customers are going to delay making certain kinds of decisions, but there may be other decisions that they make.
“I think, and added to that liquidity that is more, money in the public markets will flow down… While we recently celebrated the 100th unicorn, none of those 100 unicorns today if they were to raise capital. If you do, you will probably get a haircut of 50 percent if not 30,” Kola said.
Cola said it has seen four to five financial meltdowns and whenever major changes happen, opportunities open up and challenges also emerge.
Ajit Mohan, Vice President and Managing Director, Meta in India said that days are coming when access to capital can be difficult.
Mohan said, “Really looking at this moment where capital is going to be difficult, at least for the next few months, maybe even more than that, but it opens up many other windows, including an opportunity for deeper problem solving.” , to take the time. Kind of solutions for product-market fit.”
Mohan expects slightly less competition for talent than the scenario seen in the last two years.
In Mohan’s view, this is a great opportunity to build the right team. He continued, “I think if the other companies aren’t growing anyway, and this is an opportunity for you to catch some of the best people out there.”
It needs to be noted that, Meta has joined hands with Kalaari Capital to grow young, invested businesses in the micro, small and medium business segment by offering them timely business skilling support. (with inputs from agency)