Market veteran Madhusudan Kela and Info Edge founder Sanjeev Bikhchandani delved into what truly drives success in investing and entrepreneurship: hunger, integrity and perseverance over pedigree or luck. The two were in conversation on the sidelines of IPFEAST 4.0 LEGENDS, conceptualised by ANAND & ANAND and curated by Safir Anand in New Delhi.
Bikhchandani spoke about the challenges of early-stage investing, saying it is “really hard to be sure” at that stage. “You are going in with a prayer, you are going in with some data but not much. You’re going in with your instinct and then you’re hoping for the best,” he said. Citing examples, he recalled saying no to Flipkart, Lenskart, Ola and Snapdeal in their early stages, but also backing Zomato and Policybazaar, where strong teams and customer love made the difference.
Kela, meanwhile, spoke of India’s entrepreneurial spirit as the country’s biggest strength, saying India is being built “in spite of difficulties” because of the “sheer entrepreneurship, hunger and greed of our entrepreneurs.” He said it’s not just about the jockey or the horse but about spotting a large external opportunity and the entrepreneur who is prepared to play it.
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He illustrated how the internet revolution alone has created trillions of dollars in wealth globally. “If I knew in the year 2000 what the internet was going to do to the world, it has created $25 trillion of wealth in the last 25-30 years. That is the power of a big idea,” he said.
The discussion also touched on whether pedigree such as IIT or IIM backgrounds determines success. Bikhchandani said there are two kinds of companies that get funded: those backed on promise and those backed on performance.
“If you have a pedigree, you will get funded on promise. If you are non-pedigree, you usually get funded only after some performance,” he said. He explained that investors use proxies like qualifications or experience in the absence of data, but added, “An IIT, IIM degree is not a guarantee of success. The first round of funding is not success, it’s just that the door is open. See what you can do with it.”
Kela added that beyond credentials, it is the hunger, determination and intent of an entrepreneur that truly matter. He said investors must look at social qualities like the ability to persist, to never give up, and to share success with all stakeholders.
When asked about the one quality that instantly earns or loses a founder’s trust, Bikhchandani said, “Integrity.” He added that other qualities he looks for include knowledge of the customer, ability to handle people, and the capacity to attract talent. For Kela, it was hunger and determination “the attitude that you have to make it up in spite of all odds.”
Kela advised investors to believe in India’s growth story and invest with a long-term horizon. “If you can’t do it yourself, then give it to someone who can really do a good job,” he said. Bikhchandani, meanwhile, offered a word of advice to aspiring entrepreneurs: “Stay close to the customer. Understand the customer, understand the need gap. Solve an unsolved problem. If you do that, you’ll find customers, and if you get customers, you will get investors.”
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