Lessons investors and founders should learn from Housing.com fiasco

The whole episode of Housing.com was pure nonsense and it was amazing to note how much attention it got. More than anything, it reflected on state of our media as well which is more interested in really trivial affairs. Dozens of websites are created every now and then, trying to change lives and then quickly fall off the horizon. Housing.com was one such initiative on housing where you got to hear similar USP- one stop shop for all housing needs.

Mr. R Gopalakrishnan of Tata Sons has a piece on the lessons one should draw from the fiasco. His key message is:

Many start-up ills can be traced to the founder’s ego or the investor’s greed, both of which are cases of desiring before deserving.

It is amazing how these lessons are forgotten especially in ecommerce space. It has been full of failures and most of the times the causes were similar to those seen in housing.com. We have a glamorous, over the top CEO who uses his brashy background (like an ivy league degree) to blow his/her trumpet. Some big investor is drawn leading to a herd of other investors. All this starts to make the right noises and soon a virtuous cycle begins. But then the story ends soon as reality kicks in leading to a quick fiasco. The decline at times is fatser than the rise.

This actually is not just for ecommerce firms but is a general lesson across businesses and organisations. The best way to ruin a well functioning organisation is to get a really egoistic person at the top and the decline follows soon thereafter..

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