Mayur Gajabi

Someone from a Tier 1 Indian VC told me a couple of weeks ago that their 10-year-old fund has a total paper return (illiquid) of ~3x. That happens to be exactly the same return as the Sensex over the past decade.* And an ETF tracking the Sensex is liquid, marked to market daily, and has lower costs. VC funds raised mega-funds of $200M+ on the India story during 2010 to 2020. Most of them are now unable to deliver the promised returns to their investors, which are usually 4-6x on the total sum invested. Contrast this with disciplined domestic funds like Blume and Sauce who did not succumb to the temptation of raising mega-funds to earn more management fees - even as they grew more successful. It’s easier to return funds when they are smaller—but you have to be willing to accept lower salaries and management fees as VCs. Blume’s founder Karthik illustrates this perfectly with a graph of his salary over time below. :) * Another metric to measure returns is IRR which takes into account when the money was actually invested investments. VCs don’t take all the committed money from LPs upfront; rather it’s in installments over time.

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“Show me the incentive, and I'll show you the outcome.” VCs will advise you on where to incorporate your startup, but beware of their own incentives in this. It is almost impossible for an Indian AIF-structured VC fund to invest in a US-domiciled corporation. Such VCs will invariably advise you to incorporate in India; otherwise, they can't invest. There are some real reasons to consider domiciling in India including better public market multiples if you decide to IPO, lower revenue threshold required to exit, and selling based on where your customers are (e.g. if you sell to the domestic defence industry, you should domicile in India).  Similarly, many US funds will not invest in Indian startups unless you incorporate in the US—YC being the most notable example. Again, there are several reasons you should consider domiciling in the US, including a deeper pool of capital (especially for certain industries like climate tech and deep tech), aligning with where your customers are (e.g., if you are a SaaS startup selling to US businesses), and stronger IP protections. Bottom line: Make sure you domicile based on what is most appropriate for your startup, not what is best for the VC!

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The New Capitalism Just Created 500 Crorepatis And it's not what Marx or Adam Smith imagined... Swiggy turned 500+ employees into crorepatis overnight. But I think this is bigger than that. This is Capitalism 2.0 emerging: The Old Way: → Capital owned by few → Workers just earn wages → Wealth stays at the top The New Reality: → Employees become owners → Value flows to creators → Wealth spreads through merit Look at this transformation: • Zomato: $1B in ESOP pool at listing • Airbnb: 900+ millionaires • Amazon: Employee wealth exceeding nations Yes, I know - this isn't everyone's reality. Most companies aren't there yet. Many workers still struggle daily. But this is why it matters: It shows what's possible: When companies think long-term When value is shared fairly When merit drives wealth This isn't socialism. This isn't traditional capitalism. This is Participatory Capitalism: Where growth benefits everyone involved. The reality? We're in transition: → Some companies lead → Many will follow → Others will resist But every economic revolution started somewhere. And this one's already showing results.

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Meet the man who turned a Hacker News comment into a $13 billion SaaS empire 🚀 Girish Mathrubootham's Freshworks story is a masterclass in spotting opportunities and executing relentlessly: 1. Girish Mathrubootham didn't graduate from an IIT. He earned his engineering degree from SASTRA UNIVERSITY and an MBA from Madras University. 2. While at Zoho, Girish spotted a The Hacker News comment about Zendesk's price hike. This became his eureka moment. Sometimes, billion-dollar ideas hide in plain sight. 3. In 2010, Girish took the leap. He quit his job and started Freshdesk (now Freshworks) in a tiny 700 sq ft office in Chennai. Start small, but dream big. 4. Freshworks' growth was explosive. They hit $1 million in revenue within 18 months. Product-market fit is a beautiful thing when you nail it. 5. Under Girish's leadership, Freshworks expanded beyond helpdesk software. They built a suite of business tools, diversifying their offerings and revenue streams. 6. In 2021, Freshworks made history. They became the first Indian SaaS company to list on Nasdaq. It wasn't just a win for them, but for the entire Indian tech ecosystem. 7. Today, Freshworks boasts $600 million in Annual Recurring Revenue. They're growing at 20% year-over-year. That's the power of solving real problems at scale. 8. The kicker? Girish proved his doubters wrong. Some relatives once said he was "only good enough to be a rickshaw puller." Now he's driving an entire industry forward. The takeaway: Success in tech isn't about pedigree. It's about spotting opportunities, executing relentlessly, and building a culture that scales. What market gap are you eyeing? Remember, the next billion-dollar idea might be hiding in a comment section somewhere 😉 #CaseStudy #SaaS #IndianTech

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Can technical founders become effective CEOs? Srinath Sridhar knew he needed to step out of his comfort zone when he founded Regie.ai four years ago. Now he and cofounder Matt Millen have raised more than $20 million and landed on G2’s list of fastest-growing software products of 2024. My full conversation with Sri is in the comments.

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Hate #Bengaluru Cab Drivers? Here's the Ugly Truth No One Talks About Last weekend, I visited Bengaluru for a wedding. Knowing the city’s cab driver reputation, I braced for trouble. My delayed flight landed in the afternoon heat. I booked an #Uber sedan (Go drivers don't turn on the AC here), and at the pickup point, the expected drama began: A Familiar Start: The driver arrived and asked: "Sir, cash hai?" I declined since I had paid online. The supervisor exchanged words in Kannada and asked him to leave. Another cab arrived - same request, same result. A Ray of Hope? A third cab showed up. I requested AC. "Sir, AC gas khatam hai." I sighed but stayed. Driver was polite and apologized. I vented about my Uber struggles and joked: "Aise hi chalta raha toh ek din khud ki car bech ke #BlueSmart ke driver banoge." Devraj stayed quiet. Silence filled the cab. A Shift in the Story: Later, a call with a friend in Marathi lightened the mood. "Sir Marathi aahet ka?" Devraj asked. Turns out, Devraj was from Bidar, a town bordering Maharashtra, hence could speak Marathi. We chatted, and he revealed his struggles: "40km ride, ₹400 pan naahi milat." I raised an eyebrow, skeptical. Surely, this was an exaggeration. The Shocking Truth: At the end of the 37 km ride (₹797 fare), Devraj showed me his app - he earned only ₹372. For a 37 km, 1 hour 20 minute ride, he made less than ₹120 after fuel. Uber took ₹425 (whopping 53%, we assumed). Here's the twist: After all the marriage ceremonies that day, I started thinking if Uber really making this much money? I checked the receipt in my app, the breakdown surprised me: ₹247.80 - Airport fees ₹120.75 - Toll ₹372 - Devraj Uber’s cut - ₹56.45 Uber wasn’t profiting much. Airport fees and tolls ate most of the fare. Devraj was upset about Uber’s huge cut. The real issue was the lack of transparency. Drivers believed customers were overcharged while they were underpaid. Customers, on the other hand, felt drivers are cheat refusing trips or demanding cash. A Design Problem: This isn’t a money problem - it’s a design problem, The app’s design played a key role in fueling this frustration: -> Drivers don’t easily see the breakdown of how much tolls, fees, and Uber’s cut are -> Customers aren’t shown tolls and extra charges clearly until after the ride Simple Fixes, Big Impact: -> For drivers: Show fare breakdowns clearly: In easy, digestible formats, explaining how customer payments are distributed. -> For customers: Display tolls, surcharges, and platform fees upfront during booking or prominently on the trip summary page. Lessons Learned: -> Don’t jump to conclusions. Sometimes, the real problem isn’t where you think it is. -> Transparency can ease tensions. Frustrations often stem from a lack of information. -> Good design isn’t flashy - it clarifies. Simple changes in app design can reshape human emotions and prevent unnecessary conflict. Sometimes, a cab ride can teach you more than you expect. Uber

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WorldQuant is offering 92L in India at IITs for hiring 21-y/o, which is insane It directly puts a fresh college graduate in the top 0.05% of India by income Explains why Indian parents see IITs as the fastest ticket to social mobility copied Aviral Bhatnagar

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There are 247 startups in the YC S24 batch. You’re probably not going to meet them all. So how can you find the best ones? I look at every single startup, meet around 10-20% of them, and invest in perhaps one. Here’s how I do it… YC produces a wonderful tool: the YC Startup Directory. It contains details on every single YC company, from Airbnb to the latest batch. Here’s how I use it to find great new startups: 1. Choose the current batch (S24 is the current one) 2. Sort by “Launch Date” instead of “Default.” Then, I can see each new startup as its product launches.  3. Look at each page, see what looks interesting. What’s novel? What’s new? 4. Contact the founders. Their LinkedIn is on the right hand side of the page. 5. Set up meetings. The directory page is a great way to prep for these meetings. It’s almost like a mini-deal memo. Investors love to complain about YC. “Wahhh, the valuations are too high, I want my mommy!” Boo hoo. They sorted through thousands of companies and picked the best ones. Then they funded them and gave them the best coaching on the planet. The deal is friggin’ gift wrapped for you. And you want that at a $8M post? What do you think of YC? More below, including how to tell which YC companies are the strongest in the batch... #startups #venturecapital https://lnkd.in/dQkFxs37

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Cofounder Conflicts 😞 ! Everyone owns everything, no one owns anything! I agree so much, Aman! Many teams suffer because everyone is doing everything and unfortunately even when everyone on the team wants to take ownership and be accountable, by design they are unable to. Clear divisions from Day 0 aren’t just a good practice—they're essential. I would go ahead and even say that don't even wait for traction. Do it early, align responsibilities, and set clear metrics for each function. Not only does this create accountability, but it also prevents the extended teams from feeling confused about who to take directions from. Sure, co-founders can contribute across the board (they should!), but there must always be a primary owner for every key function and metric. It keeps the vision sharp and execution smoother. If you are a founder or someone who worked in an early stage startup, do share if you witnessed this? How did you tackle it? Let’s discuss! 👇 #Startups #CoFounders #Accountability #Growth #Leadership #Entrepreneurship #India

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Why India’s Middle Class Is Left Behind: A System Built on Their Shoulders, Yet Neglected If you’re middle class, you’ll work hard, pay your taxes, and get by, but you’ll rarely get the support, opportunities, or benefits that are more freely available to either the wealthy or the underprivileged. Why the Middle Class is Overlooked: No Voice or Representation: Unlike the wealthy, who can lobby for favorable policies, and the poor, who benefit from government schemes, the middle class lacks proper representation. In political debates, they’re often overlooked. They don’t belong to the billionaire elites, nor do they fall under the income brackets that qualify for subsidies or social benefits. For example, in 2023, India’s budget allocated ₹79,000 crore for food subsidies and other welfare schemes aimed at the economically weaker sections, while there was little in the way of tax relief or support for the middle-income earners who contribute a significant portion of their earnings as tax. High Taxes, Few Benefits: The middle class bears a heavy tax burden but gets little in return. They are not poor enough to benefit from subsidies and not rich enough to utilize tax loopholes or exemptions like the wealthy. In fact, according to data from the Finance Ministry, the middle class contributes to more than 50% of India’s income tax collection, yet most welfare schemes cater to other sections of society. Where does that money go? It’s used to fund large-scale government schemes for the poor or to create infrastructure for the elite, leaving the middle class in a limbo of high taxes and minimal benefits. The Corporate World Thrives on Middle-Class Labor: Corporates, especially in sectors like IT, banking, and finance, rely heavily on middle-class workers to fuel their growth. Yet, in return, they get job insecurity, stagnant wages, and long hours. A 2021 survey revealed that nearly 40% of corporate employees in India work more than 50 hours a week, well beyond the standard 40-hour workweek. Inflation Erodes Their Savings: Even simple things like affording a home or quality education for their children have become distant dreams for many. A 2022 Reserve Bank of India report highlights that inflation disproportionately affects middle-class households with fixed incomes, while corporate profits soar and government relief is minimal. No Social Security: India offers little to no safety net for its middle-income earners. Whether it’s healthcare, retirement planning, or education, the middle class has to fend for itself. If you lose your job or face a medical emergency, you are largely on your own. If we don’t start demanding change, no one else will stand up for us. The reality is that the middle class has always been self-sufficient, but now, more than ever, we need a system that acknowledges our importance and ensures that the future is brighter, not just for the rich and the poor, but for everyone.

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Geetansh is not your typical founder - he owns nothing. He prioritize employee’s well being over business metrics The world sees India as a powerhouse—aiming to become the 3rd largest economy with a $7-8 trillion potential Achieving this economic feat necessitates creating 10Cr jobs, leading to a dynamic, transient workforce Geetansh recognized this early and challenged the traditional pathways of ownership, proposing a solution that aligns with the fluid nature of modern urban life Established in 2015, RentoMojo has emerged as India's largest appliance and furniture rental company. With 300+ Cr in revenues the company is profitable and operates across 20 cities The company caters to customers who value flexibility and affordability over taking out long-term loans for depreciating assets Join us as we talk to Geetansh on this week’s episode of founders unfiltered by A Junior VC https://lnkd.in/gsgTnwF9

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Yahoo’s CEO called Google “WORTHLESS” in 1998. What happened? In 1998, 2 Stanford PhD students, Larry Page and Sergey Brin, walked into Yahoo’s office. Yahoo at that time was valued at $125 Bn and held 90% of the search market  They said: “Buy our search engine for $1 million!” Yahoo’s CEO dismissed it outright: “WORTHLESS. We’re a web portal.” Yahoo said “No”. That “worthless” search engine was BackRub. But Larry and Sergey rebranded their project from BackRub to Google and built PageRank, an algorithm that ranked websites based on trust. By 2002, Yahoo realized its mistake. They tried to buy Google for $3 billion. The founders asked for $5 billion. Yahoo said “No” again. Meanwhile, as Yahoo spent billions on failing companies, Google quietly built: – AdWords to monetize search – A vision of search as the gateway to the internet In 2008, Microsoft wanted to buy Yahoo for $44.6 billion. Yahoo said “No” yet again. In 2017, Yahoo was finally sold for just $4.48 billion—less than 1/10th of Microsoft’s offer. The lesson: Big ideas rarely look obvious. That’s why most people fail to see them. If you believe in your vision, no rejection can stop you. #business #startups #leadership #growth

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You don't need an iPhone or PS5 in 10 minutes. But you could use an ambulance in the moments of crisis. Last week, Blinkit unveiled a 10 minute ambulance service in Gurgaon, soon to be expanded to other Indian cities. 🚑 The announcement however has sparked 2 dominant discourses: ✨ On one hand, there is celebration: in a country where healthcare infrastructure often falls short, this initiative can potentially save countless lives. 👀 On the other hand, critics argue that such services highlight systemic failures. They assert that it is the government's responsibility to provide free and accessible healthcare, which of course includes ambulances. Here’s why I believe Blinkit deserves applause, even amid these nuanced debates: 1️⃣ Critics of Blinkit’s initiative focus on the broader question: why does such a service exist in the first place? And it’s extremely valid. The ideal scenario would indeed involve a government-funded system. However, this critique misdirects frustration. Blaming a private company for identifying a critical need and acting on it overlooks the larger systemic issue.  2️⃣ While Blinkit claims the service is not profit-driven, even if it were, the larger good outweighs any moral dilemma. Private companies thrive on addressing gaps in the market, and in this case, the gap happens to be life-threatening. If the government steps in to create a comparable service that is free, end consumers would only benefit from having choices, which is a win-win scenario. 3️⃣ When a loved one is in distress, time is of essence. A 10 min ambulance could literally mean the difference between life and death. In such moments, concerns about 'dystopian' implications tend to fade, and they’re often replaced by gratitude for a solution that works in the end. Having said that, I agree that the service is imperfect. It won’t cater to the most underprivileged members of society, given its ₹2,000 fee. But for the middle classes who can afford it, this service offers immense value. If it helps even 50% of the population, it is still a net positive impact. 🎯 It is possible, and necessary, to hold two thoughts simultaneously: celebrating Blinkit’s effort while questioning the government’s shortcomings. The two are NOT mutually exclusive. Instead of framing this as a ‘dystopian’ failure, it can be viewed as a stepping stone by highlighting areas where the public sector must step up. Until we live in a world where everyone has access to efficient healthcare, every effort to bridge the gap deserves their due recognition. 🤝 Kudos to Albinder Dhindsa and the team 🙌

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I have never spoken about how SiftHub was born in such depth publicly. Got a chance to share my journey in this episode of Matrix moments with Pranay. Here are a few things I shared: - First time experience - an idea was born and product building started immediately. This time I had more than 200 conversations and avoided a pivot - Sales enablement stack is crowded and that's why SiftHub exists - Sales teams need to get their time back to build customer relationship - Bring AI to workflows rather than workflows to AI to not be a GPT wrapper - Solving the problem 80% for one team and not just 15-20% for every team - How the 120 sec elevator pitch came down to 30 sec with solving a problem deeply - 3O Framework for early team building - Ownership, Over-communication, Obsession - Compounding of knowledge, experience and wealth - The secret of having a happy married life for a Founder ;) Full episode link in comments Matrix Partners India Avnish Aakash Vikram Sanjay

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A young friend who is pass out from BITS Pilani is looking for opportunities with VC firms. Please let me know if you need to connect with him. Here are few things he has done in the past. Due Diligence for an early-stage Venture Capital fund. Have comprehensively evaluated multiple companies so far across segments ranging from Lending platforms, B2B SaaS for aviation and logistics aggregators. • Assess product and team capability via personal meetings and reference checks. • Conduct market research through both primary research by connecting with industry experts, and by secondary research to assess market sizing, perform competitor benchmarking, analyze feasibility of value proposition and metric traction for different financial models. • Present findings to investment committee based on diligence for approval. • Summarize due diligence for investors for approved deals by drafting investment memorandums. • Conducted research on India's retail sector, to gather insights on success factors for retailers selling aspirational goods, efficient D2C model, in-house brand focus, and efficient SG&A management for physical stores.

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Whoa…… from $22B to zero. And before this, in February, once the world’s most valuable Edtech startup was valued at $250m post money. Chilling. Any thoughts on why this is happening and insights for founders, Edtech and beyond? #startup #fundraising #valuation #chasingthebubble #fundamentals

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Can you think of a business that runs on a 0-day working capital cycle? PharmEasy saw a 90% valuation cut last year, from its peak of ~$6B. Practo, and MFine are also struggling. Online medicine delivery is tough because, unlike #ecommerce , people don’t buy medicines for discounts. It is a very high-trust transaction, hence offline any day triumphs. That’s why most #medicine delivery startups have started to foray into a slightly higher margin and to some extent broken #business : Lab testing. Pharmeasy had acquired Thyrocare to up its lab testing game. You would get a lot of promotional messages on Practo, MediBuddy and other teleconsultation #apps to carry out tests from their app. But if one player has cracked and monopolised this #market, it is Dr Lal Pathlabs. Dr Lal PathLabs has ~6000 diagnostic centres across India that provide 5000+ tests. Out of these ~3000 tests no other path lab provides(high EBITDA margin). It does about ~Rs 3000 Cr in revenue and is a market leader in lab testing and pathology #business. So how Dr Lal manage to do so? Lab testing is an extremely fragmented market with local players almost holding ~85% of the market. It is also a very difficult business. Unlike the US, where it's more of a B2B business and insurance companies directly tie up labs and strike bulk deals. India is a B2C #market, where most of the time the final consumer pays for every test. Hence managing working capital is difficult and critical. That’s where Dr Lal triumphs. Working Capital Cycle is: Average Receivables Period + Average Inventory Period - Average Payables Period A longer cycle is not favourable for any #company because it ties up capital for a long time without generating any return. Receivables are solved because every time you take a test, you pay money upfront. Hence it is 0 in most cases. Managing inventory is very tricky. Every test involves 3-4 inventory items. For 5000 tests across 6000 centres becomes a herculean task. Dr Lal follows a different model. What it does is, it aggregates demand from a bunch of its test centres and then places a bulk order. Its #technology allows to get a real-time analysis of inventory across each of its centres. Hence with so much data it predicts the combined inventory required across, multiple centres and gives bulk order. Since it gives such large orders, it is able to strike deals with suppliers for larger credit cycles (larger payable days). The higher days of inventory is compensated by a higher payable day. Hence it is able to operate at a 0-day working capital cycle, compared to its competitors with 15-20 day cycle. It is also a formidable #wealth creator. It operates at an ROCE of 20-25% and has almost tripled its stock price in the last three years. Do you think the new-age teleconsultation/medicine delivery #startups will be able to compete with Dr Lal Pathlabs? #kneeledge

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Startups don't need 'big brains' - they need 'big hearts.' Hearts that can withstand the breathtaking ride, hearts that have experienced the noise and emerged bolder. A Harvard MBA or a stint at Google might look great, but what doesn't mean someone knows how to roll up their sleeves and get their hands dirty. Well, I don't know which one I fall into but I am the one who can roll up their sleeves and get their hands dirty. Real entrepreneurship is chaotic. And requires more than just big brains and a polished resume. It needs grit. #career #entrepreneurship #Coaching #Leadership #Linkedin ♻️ Reshare if you found this helpful. If you’re stuck somewhere and need personalised coaching, book a call with me at https://lnkd.in/ggxZjxtQ

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