STARTUP SPECIAL..... Believe in yourself, enjoy the journey

STARTUP SPECIAL Believe in yourself, enjoy the journey

A startup that fails to take off is not the end of the road. It teaches lessons of a lifetime, writes IIM alumnus Eraj Hassan

The summer of 2014 was a time like no other in the Indian startup ecosystem. There was a remarkable bustle in the startup market with reports of new startup ideas being funded every other day. Providing the impetus was a bunch of early-stage investors – many of whom were once entrepreneurs themselves. Lack of earlystage funding had remained an obstacle for 20-something entrepreneurs. It seemed like many more had arrived at the cusp and were ready to take their flight into entrepreneurship.

DARING TO DREAM

In the final term of my MBA at IIM Indore, I decided to join the bandwagon with two of my batchmates. We launched Cookaroo - an online platform for healthy, affordable and good quality meals. Recognising the potential of the daily meal market, many startups had mushroomed in this space – Spoonjoy, Dazo (earlier Tapcibo), Eatlo, Eatongo, to name a few. Each had their hypothesis of how they would take the spoils. Throwing caution to the winds, we started with a personal capital of Rs 3 lakh.

FUNDS CRUNCH DID IT

The Cookaroo journey was anything but smooth-sailing. Our first two business models had failed and we had exhausted most of our startup capital. Raising money from friends and family, we were quick to launch Cookaroo 3.0 – the model that eventually scaled to eight areas in Bengaluru. Finally, early-stage funding came calling and we had secured ourselves some financial respite and kept the flame flickering.

Let me cut to the chase – there was no happy ending. The same market that was awash with funds 15 months ago had now a growing concern for ‘irrational exuberance.’ Investors were concerned about profitability and exit timelines of their investments. The lean funding meant startup casualties. Despite interest from a well-known food start-up, the terms of acquisition remained unfavourable, and we decided to shut down Cookaroo.

VALUABLE LESSONS LEARNT

Do my co-founders or I have any regrets in the aftermath? The answer is ‘no’. Yes, it has become almost impossible for us to land jobs at large companies but we were keenly absorbed by other large startups who were proactively on the lookout for people with entrepreneurial experience.

The learning curve for a startup founder is extremely steep and teaches you many invaluable lessons. One, you realise the importance of building a strong team culture. Two, I cannot understate the importance of hiring the right people – look for attitude and culture fit, as a single bad hire can take you back considerably in the early days. Three, never be too shy to ask for help. Four, speed matters in business and fostering a sense of calculated risk-taking remains crucial. And lastly, gear up with selfbelief and do not forget to enjoy the journey.

ERAJ HASSAN
Founder, Cookaroo - an online platform for healthy meals

TOI25JUN18