KUNAL SHAH on winning in India, 2nd-order thinking, the philosophy of startups, and more
Guest: Kunal Shah, CEO and Founder of CRED, a fintech startup in India.
Host: Lenny Rachitsky
Context: Discussion about building products in India, cultural differences, the success of Indian CEOs abroad, and Kunal's entrepreneurial journey.
Key Takeaways:
Long-Term Thinking: Success in business and life requires a long-term mindset, allowing for resilience and sustainability despite short-term challenges.
Market-Specific Nuances: Understanding local cultural and economic factors, like low ARPU or different value perceptions, is key to building successful products.
Balancing Global and Local: Entrepreneurs must balance global aspirations with local realities, creating products that appeal globally while meeting local needs.
Podcasts Notes:
1. Discussion on India vs. U.S. Market:
Differences in building products: high user acquisition potential but low revenue.(Opp. in US)
Risk-taking in India is low due to societal structures, affecting entrepreneurial behavior.
Indian startups have different challenges like focusing on maintaining a large user base while managing low ARPUs.
2. Indian CEOs' Success in the U.S.:
Immigrant CEOs have succeeded due to a unique balance between values and adaptability.
Indian culture promotes sustaining principles (Dharma), which helps them maintain the vision of the founders while scaling the company.
They balance the traits of high values but varying levels of obedience, drawing on cultural frameworks.
3. Second-Order Thinking:
This involves predicting the ripple effects of an action or decision to anticipate future outcomes.
It is crucial for leaders to navigate complex situations and make better strategic choices.
4. Delta 4 Framework:
Products need to be at least four times more efficient or valuable than existing alternatives.
A product must be irreversible, create a high tolerance for failure, and have a unique, brag-worthy proposition.
Examples given: Uber vs. traditional taxi services, buying a suit online vs. offline.
5. Market Challenges and Opportunities:
Indian market is characterized by low trust, which leads to a concentration of brands.
Need to build multi-functional apps and services due to market constraints.
There's an opportunity in AI and digital public infrastructure.
6. Curiosity and Adaptation:
Kunal emphasizes the importance of curiosity for growth and learning.
Curiosity helps in adapting to changes and solving complex problems.
Staying curious involves questioning the status quo and continuously learning.
7. CRED's Strategy and Growth:
Focused on India's top 25 million families with higher income and global outlook.
Leveraged Kunal’s past success to secure significant funding early on.
Emphasizes different growth strategies for 0-to-1 versus 10-to-100 stages.
8. Impact of Low ARPUs:
Indian startups face challenges with monetization due to low per capita income.
Must look for global revenue sources or create unique monetization models.
9. Advising Entrepreneurs:
Encourages founders to focus on solving hard problems and learning from other’s failures.
Suggests embracing long-term thinking to handle risk and failure better.
10. Success and Failure Stories:
Kunal reflects on his personal journey, early struggles, and how failure shaped his success.
Emphasizes learning from both successes and failures.
11. Maintaining Positive Mindset:
Discusses dealing with criticism and staying focused despite public scrutiny.
Advises filtering feedback to focus on constructive criticism from experienced individuals.
12. Future of Indian Startups:
Optimistic about India's potential despite current challenges.
Believes in the vibrant ecosystem and government support for digital and startup initiatives.
