Welcome back to Startups Weekly, a weekend newsletter that features the week's remarkable startups and venture capital news. Before I turn to today's topic, let's catch up a bit. Last week I wrote about the startups we lost in 2019. Before that, I wrote down the key moments from VC in 2019.
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TechCrunch reporter Manish Singh wrote an interesting article this week on the state of Indian startups: Indian startups are increasing record capital and losses are increasing (additional crunch membership required). He gives cause for concern that the financial results of the largest Indian startups are cause for concern. Gems like Flipkart, BigBasket and Paytm lost a total of $ 3 billion last year.
"It is particularly problematic for startups that there is no clear way how they could ever make big profits," he writes. “Silicon Valley companies, for example, have entered and expanded into India in recent years and have invested billions of dollars in local activities, but India has not yet made a significant contribution to its bottom line. If that wasn't difficult enough, many Indian startups compete directly with the giants of Silicon Valley, which is impressive, but an expensive undertaking. "
Manish's story came a day after the New York Times published a detailed report on Oyo, a tech-enabled budget hotel chain and emerging star of the Indian tech community. The NYT wrote that Oyo offered unlicensed rooms and bribed police officers to avoid, among other things, problems with toxic practices.
Whether Oyo, supported by billions from SoftBank Vision Fund, will become India's WeWork, is cause for concern. India's startup ecosystem is likely to face a number of obstacles as it grows in competition with companies like Silicon Valley.
Follow Manish here or on Twitter for more of TechCrunch's growing coverage in India.
Venture capital highlights (it was a slow week)
How to find the right reporter for your startup
If you haven't subscribed to Extra Crunch yet, now is the time. Longstanding TechCrunch reporter and editor Josh Constine starts a new series to teach you how to set up your startup. In it, he will examine embargoes, exclusive broadcasts, press kits, interview questions and more. The first of many how to find the right reporter for your startup is now online.
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Another week, another new episode of TechCrunchs on venture capital focused podcast "Equity". This week we discussed some of the biggest scandals of 2019, peloton's weird vacation ad, and the controversy surrounding baggage takeoff away. Listen here and subscribe too.
For everyone who is concerned about changes in equity after my departure from TechCrunch, the lovable Alex Wilhelm (Co-organizer of the foundation of Equity) will keep the show alive and soon there will be a brand new co-organizer in my place. Please continue to support the show and recommend it to all of your friends who love podcasts.