Success rate among Indian start-ups is good: IT expert
Mortality rate among start-ups in India is not alarming, and their success ratio is actually good and on par with global trend, said an expert in information technology (IT) industry.
"In the start-up industry (in India), if you look at ten companies at least three or four will succeed. It's a good rate. Globally, that's the norm.
"I don't think it (mortality rate) is alarming. Some of them had some challenges in the B2C space. But it's okay.
The nature of the industry is like that. Nothing alarming," former Chief Financial Officer of Infosys V Balakrishnan said.
On reports that valuations of top-listed IT companies in India are at record lows for nearly a decade, he said the industry is facing "too many headwinds and that it is reflecting in their valuation."
"But I think the IT industry is the only industry which is growing, has good cash flows, and return on equity is very good," he said.
There are very few industries in India with such a scale and good financial matrix, Balakrishnan said, adding "Once the headwinds somehow minimise, the market will see more value in those stocks."