Flipkart co-founder Binny Bansal says that when it comes to competition, Indian startups have an advantage, which helps them compete better with foreign startups, even as the latter finds it challenging to succeed in the world's third-largest startup ecosystem-- India.
Flipkart co-founder Binny Bansal has said that when it comes to competition, Indian startups have an advantage, which helps them compete better with foreign startups, even as the latter finds it challenging to succeed in the world’s third-largest startup ecosystem– India.
Indian startups know how to “do things on your own” and grow, which “becomes an advantage for Indian startups, (that) can compete better,” and that’s not the “strength of a lot of foreign companies,” Binny Bansal told CNBC.
Foreign companies are not able to deal with the local environment as India is “definitely a very different market than Western markets,” along with the frequent changes in policies by the government, according to Binny Bansal.
Binny Bansal, who had to quit Flipkart last November over charges of ‘personal misconduct’, said that Flipkart had started its logistics vertical on its own, something that doesn’t happen globally. “So you have to do things in a different way because of how the market is structured.” Flipkart had launched its delivery arm called eKart in 2010.
Flipkart and Amazon have been in the spotlight over past few months particularly with respect to the treatment of products sold by seller businesses in which they had stakes. The government had later barred such companies to sell goods of vendors wherein they had stakes directly or indirectly through their group companies.
Recently, the government had introduced draft e-commerce regulations that prohibit businesses to share data across borders.
Binny Bansal said that while businesses take significant time and capital to grow but it becomes difficult for them to run businesses amid changes in policies every second or third year.
Flipkart had last year sold its 77 per cent stake for $16 billion to the US retail giant Walmart. Following his exit from Flipkart, Binny Bansal launched technology platform for startups xto10x Technologies that help them scale.