6:59:20 PM PST - Friday, December 9th, 2022

Flipkart chief warns startups of turmoil and funding crunch for another 12 to 18 months  

By Editor - Mon Nov 21, 12:43 am

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The funding winter for the startup ecosystem may continue for another 12 to 18 months and the industry might have to grapple with a “lot of turmoil and volatility,” e-commerce giant Flipkart chief executive Kalyan Krishnamurthy has warned executives. “This is going to be tough next year. My estimate is that a lot of startup founders will hit the market between April to June next year, and that’s the moment of truth for the ecosystem,” he said at a gathering over the weekend organized by Indian newspaper Economic Times. Typically a reserved and soft-spoken executive, Krishnamurthy told hundreds of attendees that startup founders should embrace a down-round and restructure their firms. Many startup founders are not wiling to take a haircut on their previous valuations in new funding deliberations, investors say. Some startup founders believe that they will not be able to attract and retain the talent if a funding event suddenly makes the employees’ existing stocks less valuable. “In 2001, companies saw a 2x to 6x spike in valuation with some underlying growth and profitability assumptions for the next two to three years.

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Flipkart chief warns startups of turmoil and funding crunch for another 12 to 18 months

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