Welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last-place week I wrote about the startups we lost in 2019. Before that, I indicated the defining moments of VC in 2019.
Unfortunately, this will be my last-place newsletter, as I am leaving TechCrunch for a brand-new possibility. Don’t worry, Startups Weekly isn’t going anywhere. We’ll have a brand-new novelist taking over the weekly update soon enough; in the meantime, TechCrunch writer Henry Pickavet will be at the helm. You can still get in touch with me on Twitter @KateClarkTweets .
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TechCrunch reporter Manish Singh confined an interesting piece on the nation of Indian startups this week: As Indian startups invoke record capital, loss are enlarging( Extra Crunch membership asked ). In it, he claims the financial performance of India’s largest startups are cause for concern. Gems like Flipkart, BigBasket and Paytm have lost a collective$ 3 billion in the last year.
” What is especially inconvenient for startups is that there is no clear move for how they would ever generate big-hearted benefits ,” he writes.” Silicon Valley business, for example, have entered and expanded into India in recent years, devoting billions of dollars in neighbourhood activities, but yet, India has yet to make any substantial contribution to their bottom lines. If that wasn’t challenging fairly, numerous Indian startups rival instantly with Silicon Valley whales, which while impressive, is an expensive seek .”
Manish’s fib came one day after The New York Times publicized an in-depth report on Oyo, a tech-enabled budget hotel chain and rising star in the Indian tech community. The NYT wrote that Oyo offers unlicensed rooms and has bribed police officials to deter trouble, amongst other poisonous practices.
Whether Oyo, backed by billions from the SoftBank Vision Fund, will become India’s WeWork is the real cause for concern. India’s startup ecosystem is likely to face a number of barriers as it grows to compete with the likes of Silicon Valley.