Tata, who additionally invests in startups, additionally stated old-age companies will recede and the younger founders of modern corporations are the long run leaders of the Indian trade.
The feedback from Tata come at a time when many startups have been blamed for what’s termed as “cash burn”, whereby the optimism of getting cash sooner or later makes enterprise funds to spend money on such corporations, and the businesses preserve incurring losses. At its peak, e-commerce main Flipkart was reportedly burning $150 million a month.
“We will have start-ups which will attract attention, collect money and disappear. Such start-ups will not get a second or a third chance,” Tata, who was feted with the lifetime achievement award on the TiECON awards right here, stated.
Tata, whose portfolio additionally consists of e-commerce firm Snapdeal, exhorted companies to conduct themselves ethically and to not be “fly-by-night” operators. He stated the startups require mentoring, recommendation, networking and likewise recognition, and welcomed the function performed by TiE, an organisation that seeks to advertise the startup ecosystem in India.
Tata additionally urged TiE to work as a shadow regulator for ethics and good practices, and guarantee that the startup sector grows in a fashion that it ought to.