Kishore Biyani: Start-ups are sexy but hopeless

Stating that start-ups are 'hopeless' and 90%  of them, 'are not going anywhere', Future Group CEO Kishore Biyani said on Wednesday that they have been made to look attractive only through daily full-page ads on newspapers.

Insisting that the start-ups must work on a bigger canvas, he said at the current state these new ventures would be too small to create the number of jobs which India requires.

"I think 90% start-ups are not going anywhere. They are hopeless...In next three-four years revenues of these companies would not be more than Rs 3,000 crore to Rs 4,000 crore," Biyani said in Delhi on Wednesday at the Economist India Summit.

Lashing out at the functioning of these new companies, he said, "I think start-ups have become sexy because of one page ad everyday (on newspapers). Otherwise I dont think that start-ups are working on a canvas, which is larger." He further said these are all funded by venture capitalists and, "After 2-3 rounds of funding, 80% shares are gone, and then are sold to some corporate houses. Start-up people should now think big, they should work on bigger canvas. All are very bright and talented people, so the canvas has to be larger," Biyani said.

"Let us take Ola. The revenues would not be more than Rs 3,500 crore. They are not creating any new economy. They just meet peoples need to commute from point A to point B."

"Consumption, which is going to drive the growth of the country and manufacturing might create the jobs and start-ups would be too small to create the number of jobs which we require."

Despite Future group acquiring online furniture seller Fab Furnish, Biyani said, "It is not viable to run an e-commerce company today".

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