Startups shuffle top deck, play to ace long-term profitability game

Over a dozen new economy ventures have appointed a new chief executive over the last 12 months, as a greater focus on profitability and governance gains primacy across the sector.

With funding in the technology and startup world drying up over the last 12-18 months, companies have been under investor pressure to chase profitability, burn less cash and grow sustainably. The top deck reshuffle in several cases has been a result of that, industry insiders said.

“This trend is a clear-cut callout that in the ecosystem, there is heavy stress on the path to profitability and a very serious relook,” said Anshuman Das, cofounder and CEO of staffing firm Longhouse Consulting.

At Third Wave Coffee, founder Sushant Goel transitioned to a board role after former KFC India head Rajat Luthra was roped in as chief executive, effective April 1. “The journey of starting up and getting the company at a certain scale is very different from taking it to the next level,” said a venture investor with a global firm. “These changes are ultimately healthy in the sense that these startups are reaching a particular level.”

 Read More