Ratan Tata warning to start-ups
Business

Ratan Tata warning to start-ups

Agency News

Industrialist Ratan Tata on Tuesday warned that start-ups which burn investors' money and disappear will not get a second or a third chance.

Tata, who also invests in start-ups, also said old-age businesses will recede and the young founders of innovative companies are the future leaders of the Indian industry.

The comments come at a time when many start-ups have been blamed for what is termed as 'cash burn', wherein the optimism of making money in the future makes venture funds to invest in such companies, and the companies keep incurring losses.

At its peak, e-commerce major 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 at the TiECON awards, said.

He was granted the award by Infosys co-founder NR Narayana Murthy.

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