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140 viewsForbes 01 July 2022
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/ 99
EDUCATION, THE HYBRID WAY EDTECH LEARNING IN THE METAVERSE
F pT a =a
DS
Back to School
Unacademy is keen to learn new ways of working to erase
OC ML Ce meee ee
CE aim Cee
Network 18 .javsoresindiacom *. od Welcome to the
Forbés
Digital Edition ¥ Tech tools are excellent value-adds but
can never replace classroom learning
School of Hard Knocks
tis by now a truism that the Covid-19 pandemic
speeded up the adaption of digital technologiesand.
resulted in some far-reaching shifts in consumer
behaviour. Yet, the question to be asked, as the
ays of lockdowns and forced work-from-home appear
behind us, is how much of that shift is permanent?
‘The answer may not be uniform across all activities
with adigital inerface. vor instance, digital aloption
in, say, retail or finance may be more sweeping than in
health, Or education. Few sectors, after all,can replace the
physical with the digital. 1c could happen to alarge extent
in banking and payments, where apps can minimise visits
toabank branch or an ATM. But there are many sectors
where digital is at best a supplement. Like education,
where tech tools and platforms are excellent value-adds
for personalised learning but can never replace classroom
teaching.
‘The pandemic may notbe over yet, but never perhaps
have we been closer to business and life as ustal since
‘March 2020 than we are now. Offices are humming and
schools and playgrounds are buzzing once again.
‘This fortnight we havea timely package on the edt
sector, which isgrasping with new twin realities: With
physical learning back around the same time as funding
beginsto slow down for some of India's most richly-vaiued
companies, how does the future look? Uncertain would be
aone-word answer but, as the action moves offine, these
founders who foresaw a post-pandemic world and made
acquisitions in the real world would be better placed. The
future may wellbe a hybrid of lasscoom and digital
‘nthe Forbes India cover this fortnight isa maverick
edtech founder who brings back memories of innovator
par excellence Steve Jobs~ but not forall theright reasons.
h
Brian Carvalho
Editor, Forbes India
Best,
[Batt
Jobs wasa creative genius obsessed with perfection and
the clear goals he had in his head. Gaurav Munjel, founder
of India’s No 2edrech firm (in value) Lnacademy, can't
be faulted for his passion and penchant for perfection.
But of late, Munjal has been in the news for something.
Jobs wasn't hest known for: His management style. Jobs"
communication with employees was poor, he is said to
have created a toxic work culture (when the word ‘toxic’
‘wasn’t quite in vogue) in which non-performers were
instantly fired, he was supremely arrogant and didn’tlike
w be corrected
‘The flip side is that perfectionists can’t suffer
‘mediocrity (what is one supposed to do with non.
performerst!) and are single-minded in pursuing their
goal. They care little about what people say or feel, and.
fear little~except failure. Munjal would seem to be in
that rare boat of tenacious helmsmen. As he spoke out to
Rajiv Singh ina freewheeling late-evening interview at
his Bengaluru office: “I fear failure alot... lam so afraid of
failing that Iam in a perpetual paranoia... My arrogance
in the beginning was not narcissism, itis just that we are
super-passionate.”
In the cover story, Singh dives deep inta how
Unacademy is changingto come to terms with more
frugal times and erase the huge blots of red ink on its
books. Is Munjal mellowing too? Perhaps. As he ells,
Singh: “I started my first company when I was 23. 1am
‘i now. Lam getting better. Lam changing.” For more
on those attempts at transformation, don’t miss ‘Live
Leamingy’ that starts on page 24. And, for the record,
-Murjal says he prefers the approzch of lon Musk (a
volatile visionary ofa diferent kind) to Jobs as “he is,
‘more open about his thinking"
‘(Fram ef Co founders of tnacademy Roman Sain. aura Mural and
femesh singh have bu real chomstry among themselves Akh Pandey
started PhysiesWalla asa YouTube chanel in 2016 34 ¢ “1° WARTIME, BUT
T'S NOT A CHALLENGE”
best ofboth online and offine, says Byja
Raveendran
40 © WORK, FORCE & ENERGY
‘Alakb Pandey battled well-funded rivals
to build his billion dollar ITT and me
‘coaching empire Physics Wallah
JULY 1, 2022
Contents |“
PG.
ea NT teh
Reg eed
Geroto |
is trying to rewire himself and
Unacademy. Can he make India’s
biggest online test prep platform
eves bee etd
Forbés
Co-founder anid CEO Gaurav Muna, and Co-Touncer and Cro Hen
46 » THE ARCOF success
ut now,
‘50 © METAVERSE COMES
TO THE CLASSROOM
Several startups are reimagining the fature
‘of education by working to integrate
having to adapt and reorient as
before
58 © BEST OF BOTH WORLDS
itech unicorns are innovating to
baild on the advantages of oth online
and offline presenct ‘Bylu Raveendran, founder, Byu', says
the global edtch story te the Indian
‘Alakh Pandey, founder of feshly-minted
‘edtech unicorn PhysieeWallah, says ne eannot
run a business that makes losses
Former investment banker Vivek Varshney,
who has founded Spe€dlabe, says le startup is
well potsed to grow at afurious pace
62,¢ SPEAKING THE
LANGUAGE OF BHARAT
‘Vernacular edtech is on the
ein India. Can it scale
despite challenges?
‘business the old guard is
68 « EDTECH'S 84 * OFNOISE AND
Ediech startups offering
cexiracurriculse activities
need to reorient themselves
{o remain relevantin a post-
72 * BABY STEPS
Prerna Jhunjhunwala made
Creative Galico one of the
fastest learning apps by using
a bunch of desi characters
76 © RIDING OUT
‘THE DOWNTURN
‘Ascheap capital becomes
‘unavailable, can the cast
guzzling quick commerce
Startups survive?
Teachers in edtech startups are having to resklland
‘adapt to the various shifts taking place in te sector
80 + AFRESH COAT 83 © AIMING
‘As new entrants look to gain | FOR THE SKIES
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working on beeting upits | Banagarecame indis’s
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Noise exposure iseausing | ROUTE.
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experienced, foreign CEOs
Can Prerna snunhiunwala's Creative Gal
change the script of early learning in India?
[ESTES] - 8/LEADERBOARD ~ 95/FROM THE FIELD
95 © BACK TO THE
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Companies are pulling
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Editor, Forbes Indiz: friar Carvalho leby Sebastian Michael Federle *
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The Growth Conundrum | ‘It's Much Lonelier At The Top Now’
Amid geopolitical challenges, global banks Executive coach Marshall Goldsmithon the
have trimmed India's GDP forceast P/12 significance of others’ in leadership P/20
ECONOMY
RBI Turns Hawkish in
Battle Against Inflation
The central bank's Monetary Policy Committee hikes the repo
rate by 50 bps to 4.9 percent to tame inflation which it forecasts at
67 percent versus earlier projection of 5.7 percent for FY23
B IN HIS CONCLUDINGREMARKS, “The upside risks to inflation as
‘quoting Mahatma Gandhi highlighted in the April and May
‘once again, Reserve Bank of | policieshave materialised earlier than
India (RBI) Governor Shaktikanta anticipated—both in terms of timing
Dasalludedto how the centralbank | and magnitude. Inflationary pressures
needs to ‘make the boldest effort to | have become broadbased and remain
sailfullsteam ahead’to ‘overtake the | largely driven by adverse supply
storm that is about tours. Isthe shocks. There are growingsigns of a
‘storm’ a metaphor for stagflation? Or | higher pass-through of inpat costs to
an economic recession? selling prices,” Das further said.
But certainly, the main headwind The central hank, after 2 long,
is the relentiess surgein food, energy | and arguably delayed response, is
and commodity prices. “The war has | _gearingup to fire multiple rounds to
led to globalisation ofinflation,” Das | shoot inflation: In April, the rate:
said on June 8. “The war in Europe —_|_setting panel voted to keep the repo
islingering and we are facing newer | rate unchanged ata historic low
challenges each passing day.” of 4 percent, but retal inflation at
In this turbulent backdrop, in its | an eight-year high of 7.79 percent
June policy meet, the RBI's Monetary | jolted the RBI to hike the repo rate
Policy Committee unanimously voted} by 40 basis points in an unscheduled
to hike the repo rate by 50 basis ‘monetary policy meeting in the first
points to 4.9 percent asit focussed on | week of May. Markets are bracing for
withdrawal of accommodation. The | a cumulative rate hike to the tune of,
cash reserverratio at 45 percent was | 150 basis points this fiscal
not raised. Although the RBI did not “This hike by 50 basis pointson
alter its GDP forecastof 7.2 percent, | the top of an inter-meeting 40 basis,
it sharply revised its inflation forecast | points hike in May is reflective of
§ 06.7 percent from 5.7 percentfor the | infation elbowing its way to the
current fiscal top of the RBI's priority list and it
The six-member rate-setting panel
hhas cautioned thet inflation is likely ‘The Ra's six member rate zeting pane!
toremain above the upper tolerance Tas cautioned that inflation is kely to
remain above the uer telerance band
band of 6 percent until December. ‘of percent until December ES
belatedly looking to catch up with
the curve. We believe we are still
far from the finishing line and that
more frontloaded rate hikes are on
the offing,” says Aurodeep Nandi
economist, Nomura
Bond markets have been edgy
The ten-year bend yield scaled a
three-year high of 75 percent in the
run-up to the June meeting. Yet the
governor’sassurance of calibrated
rate hikes worked as a balm to soothe
frayed nerves of investors.
‘he RBI will ensure availzbility
of adequate liquidity to meet the
productive requirementsafthe
economy. The Reserve Bank will
also remain focussed on orderly
completion of the government's
borrowing programme,” Das said.
‘On June 8, after the outcome ofthe
|
RBI: Ri
ig Inflation Woes (%)
willl
ar oy —
Ss Wh th wh ae HY Sh a
-Apritpolicy
June policy
June monetary policy meeting was
‘announced, bond yields cooled down,
by around 7 basis points.
“The commeat on the orderly
completion of the government
borrowing programme served to
cool the 10-year G-see yield. We
foresee further repo hikes... however,
the rise in the yields will now be
somewhat shallower than our earlier
expectations,” says Aditi Nayar, chisf
economist, ICRA.
‘Sampath Reddy, chief investment
officer, Rajsj Allianz Life, points
‘out the absence of the word
‘accommodative’ from the policy
stance. He says a significant
part of the pandemic led policy
accommodation has been reversed. LeaderBoard
transactions
Num:
processed by UPlin May,
“Bond yields will track global crude
oilprices, monetary policy stance
(of major central banks and the
inflationary trajectory,” Reddy adds.
‘The RBI’s laser-sharp focus on
tamingiinflation has translated into
anurgency to tum the tap off easy
liquidity. In the last two months, the
central bank has raised the effective
overnight rate by 130 basis points
Pankaj Pathak, fund manager
fixed income, Quantum AMC, sees
the repo rate near the6 percent mark
byearly 2023. The bond yield curve
is already pricing for a repo rate of 6
percent by early next year. Thus, the
bond market may note too sensitive
to the RBI's rate hikes going forward.
However, high global monetary policy
uncertainty, rising crude oil prices,
and unfavourable demand-supply
dynamics will continue to put upward
pressure on medium- to long-term
bond yields,” Pathak explains.
Supply chain disruptions have
pushed up inflation levels to decadal
highs in most countries, forcing
global central banks to take action
by tightening monetary policies.
Emerging economies are bearing the
brunt of the policy shifts in advanced
High input costs, tepid
consumption, and weak economic
activity have slammed the brakes
‘onGDP growth in India. “We have
already reprioritised our policies to
control inflation, without losing
‘ight of the growth requirements,”
Das said,
But economists and industry
leadersare sceptical. “Our fearis
that growth could seea serious
deceleration in the second half of
FY23 and FY24 on the back of such
steep tightening and structural
constraints,” says Nikhil Gupta, chief
economist at Motilal Oswl
Since the rate hikein May, banks
RBI: Tepid Growth Forecast (%)
m2
162
Us Ga Wh Sh BY fa
B
February ptey—
eee
have increased interest rate on
home loans by 30-40 basis poinss.
Asinterest rates inch up further,
rate-sensitive sectors are in a tough
spot. For example, realty players
areconcerned home loans will turn
dearer and stamp out signs of revival
in the dabe laden sector.
sing interest rates along with
elevated property construction costs
and product price pressures could
adversely impactthe real estate
buyer'ssentiment. We hope economic
recovery and household income
growth will serveas acushion for
sustaining consumer demand in the
face of this rate hike.” says Shi
Bajjal, chairman and managing
director, Knight Frank india,
As interest rates climb, borrowers
feel the pinch. Lending rates are
going up, as pricing of most loans is
inked to benchmark rates. However,
depositors aren't earning higher
returns yet. The interest rate on fixed
deposits ticks up witha lagof a couple
of months. Nonetheless, rampant
inflation stands to cap real returns.
De RU ee ea iy
Psa OR a ating
ua
ey Y
‘Agi patiey—
es Oh dh oh BY
tune policy
Repo rate:
Big shift in policy
49
Eis
bbe
Te
APRIL
By
ns
bers Prry
ied
‘This brings up the question: When
will interest rates peak?
‘The tone of the monetary
policy marksa clear departure
from the central bank's earlier
pro-growth statements of doing
whatever ic takes to support
durable recovery in the economy.
However, amid giobal volatilityand
widespread uncertainty, the RBL
governor chose to steer clear of
forward guidance.
Instead, Das said, “Monitoring
and assessing inflation pressures
and balancing risks to growth will be
crucial for judging the appropriate
policy path as we move ahead.”
FORBES INDIA~ JULY, 2022 fe PSBLOANS’
BRAND CONNECT
ONLINE PSB LOANS: CHANGING THE FACE OF
LENDING WITH DIGITAL INFRASTRUCTURE
‘1 2016, finand Shah, a practicing CA who was trying to raise
funds for small companies, wondered ifthere was a possibility
to digitize the process so that MSMEs could get the funding
faster. While conversing with Ronak Shah over a cricket mate,
hae gotthe answer, and together, they decided tostart Online PSB.
Loans Limited (OPL). "We are striving to create an ecosystem
that can provide financial services ta both parties involved in
the lending transaction, using the latest technology,” says Jinand
‘Shah, Co-founder, and MD, OPI
“The Platform integrates advanced technologies to automate
and digitize the lending processes for borrowers and lenders by
creating a complet, scalable and robust system, Almost all Public
Sector Banks and a few leading Private Sector Banks and NBECs
have been cn-boarded on the Phtform for providing MSME and.
Retail finance. ‘This further makes the decision-making for loans
an easy on-the-go process and helps retrieve faster sanctions with
cease. The platform is constanily scaling up with highly advanced.
technology for the Lending ecosystem. The speed and agility of
execution are best-in-class in the Fintech Industry. OPL offers
1 credit marketplace for borrowers and lenders by simplifying
borrower experience and providing ease in credit access. In
addition, the company provides white labelled solutions for credit,
institutions that include STP processes and digital monitoring
encompassing the lending lifecyle.
Seamless digital lending
OPL has Launched the initiative ‘PSBLoansinSoMinutes’ afer
a thorough analysis of financial as well as entrepreneurial
ecosystems to remove time-consuming and tedious processes
and save substantial time, energy, and costs in lending. As the
name suggests, the platform has seta new benchmark by offering
digital approval for Business (MSME) Loans, Mudra Loans Retail
(personal, home and auto) Loans, and Microfinance in 9 minutes
fom anywhere, saytime without having to visit the bank.
‘The solution uses sophisticated algorithms to read and
analyze data points from various sources such as IT returrs, GST
data, Bank Statements, MCA21, Bureau and Fraud Database in
real-tiae while capturing the applicant’ basic detaile using emart
analytics. Launched in November 2018, the platform emerged
as India’ largest digital lending portal within three months of
starting operations". Currently, the platform has been adopted
by over 1,50,000 benk users encompassing nearly 60% of bank
branches in India, "The platform has processed 6,17 000 proposals
amounting to INR 1.24000 crore with more thaa INR. 70,000
crore of disbursements.
Helping the entire ecosystem with digital processes
For borrowers, the process is contactless and simplified. They
can apply from anywhere or at any time without visiting a bank
bbranch, manage and track their applications inreal-time,andeven
apply for multiple bans through a single profile. With real-time
digital approval within $9 minutes, the loan is disbursed within
7-10 days by the bank.
For lenders. on the other hand. proposals are screened by
the platform, helping them save substantial time and cost in
credit appraisal. This is the only platform with a banker interface
covering branch level integrations for bankers for real-time user
‘management, creating real-time product and scoring models,
credit appraisal, and, decision making inline with their existing
credit policies as wel as real-time reporting and monitoring.
Awards galore
this year, OPL has been honoured with Ganesh Bharat
Ratan Award 2022 for the Most Innevative Fintech Product
and Make in Indis Initiative Award 2022 for The Innovative
Leader by MSMECCH. ‘The company bagged titles, Best
nancial Innovation and Fintech Leader of the Year by DOD
‘Awards and Summit 2021. In 2020, Online PSB Loans Limited
received the ‘Technoviti Award from Ranking Frontier: for the
psbloansinS9minutes.com platform. OPL was also selected
among the Top 20 Fintech Companies in tndia Fintech Awards
2017. It won the 2nd Prize pan India by RBI's Technology arm
IDRBT ia Banking Technology Contest 2017. ‘These are only
some of the feathers in the hat for the company and they have
been recognized in abundance since the star, proving the merit
of their products and the value they bring tothe front.
“Iheroad ahead
Since its launch, Online PSB Loans has witaessed a huge flow
of loan applications and more than 5000 video testimonials
have been reccived from borrowers showing gratitude for timely
help and support. No matter how complicated the loan product
is, the company is working to create the capability for bankers
to design it on theie platform and for borrowers to apply in an
hour or less. The company is closely working on the process of
‘opening its infrastructure for various other players. Uhey are
‘working towards leveraging infrastructure for various industry
segments. The usage will be for Bank Schemes, Government
Schemes, Industry Ecosystems, et. Further, their AYML-based
advanced scoring for MSMEs will be one of the key benefits for
credit institutions and MSMES.
Crete Report on India Banke Sector Marsh 2019 GDP growth projections
LeaderBoard totais
The Growth Conundrum
Amid geopolitical challenges and supply disruptions, ratings agencies
and global banks have trimmed India’s GDP forecast
India FY23 GDP Growth Outlook
== State Bank
ome of india
aa Citibank 7.3: 752
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FORBES INDIA= JULY, 2022 Forbesindia.com
Forbés LeaderBoard
ery
‘SEVERAL NATIONS
‘around the world
have been
condemning derogatory comments on
Prophet Muhammed and Islam made by
Nupur Sharma and Naveen Jindal, two now-suspended
leaders of the BJP. ‘These countries include India’s crucial
Gulfpartner, the UAE, and security partners Oman and
Jordan.
BUSINESS
Trade in the Balance
A look at key trade figures with the countries that have called
out comments on Islam and Prophet Muhammed made by
two BJP leaders recently, and have boycotted Indian products
Videos and images have surfaced on social media
of supermarkets in Gulf countries sealing shelves that
stock Indian products, or taking them off the shelves
completely. According to the data from the Ministry of
Commerce and Industry, UAE, Saudi, and Iraq are among.
India's top 5 trading countries
‘Asthe government gets into damage control mode,
look at some key trade figures with the countries that
have called out India thus far
India's total trade in FY22 with the
countries that have condemned the
»O remarks so far
fl
-_ * (esi)
Rank3 UAE 72,878.3
Rank& Saudi 42,859.5
Rank5 |raq 34,330.3
Rank8 Indonesia 26,174.2
Rank21 Qatar 15,031.5
Rank 27 Kuwait 12,243.7
Rank 30 Turkey 10,712.9
Rank31_ Oman 9,989
Rank 52 Jordan 2.7165
Rank $8. [ran 19145
Rank 63 Bahrain 1,653.2
Rank 89 Afghanistan 1,065.4
Rank 93 Maldives 739.3
Rank 98 Libya 597.8
Rank 103 Pa 516.4
India
consumes
5 mln
barrels of
oil per day
Barrels imported in FY22
90.1 34.2
nO ian
19.2
billion 58.3 PERCENT
UP YEAR-ON-YEAR
India's exports to
the Gulf Cooperation
Council (GCC) nations
Cereals, electrical
equipment, apparel,
and machinery are the
top exported items in
‘the region
iG
Set
86 PERCENT
UP YEAR-ON-YEAR
India’s imports from
the Gulf Cooperation
Council (GCC| nations
Petroleum products,
precious and semi-
precious stones,
and plastics are the
top imported items
from GCC
rn <= a :
Incl’ ota trade amount with
seven Gull countries: UAE, Sau
trae Qatar, Orton, Bahrain, Kuwall
“~~ 21.7 PERCENT
non-resident
Indians (NRIs)
stay in GCC
countries
3.4
million
e8e
According to an RBI report from
2018, UAE alone accounts for
26.9 percent of inward
Temittances to India
2.6
million 1
million
55n 3%
Kuwait Oman
6.5%
@atar
To"
Saudi
Arabia
make the top 10 countries for India’s inward remittances
According to the latest data 2813.4 tn
available for a country-wise ©" 1 Se $11.2 on
breakdown of inward remittance ©" Sill $4.6 bin
by Pew Research Centre (2017)
(CN $4.1 on
(CE $3.2 vin
CEO $1.3 bn
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intial headcount of 250 and will be focusing on data
and digital capabilities, product modelling and risk
management. This commitment was announced
afer a meeting between Minister KT Ramra Rao and
Veronica Scotti, Group MD and Ivo Menzinger, MD
Public Sector Solutions of Swiss Re
The Lulu Group confirmed an investment of
Rs 500 crore in Telangana, towards a world class
60
cee
Sa PIE
food processing facility, entirely deected for exports to Gui
‘ountties and ether global markets
The fast growinge-commerce company, Meesho, agreed io
set up its facility in Hyderabad and work with the government
of Telangana towards or-boarding retail seller in Trl towns
Spanish multinational, Chemo will be investing
approximately Rs 100 crore over next two years to expand
's Hyderabad site. The announcement was made in Davos,
after the Ie
Dr. ean Daniel Bonny, R&D Direct, met Telangarals Minister
KT Rama Rao.
Ashinvad Pipe and Akaxis will be setting up 2 greenfield
faciliy with an investment of Rs 500 crore in Telangana. This
investment which entals the manufacture, storage and
distibuticn of plastic piles, tings an Lories, will create
ver 500 jobs in the state. The announcement came after the
CFO of Aliaxis, Koen Sticker met with Minister KT Rama Rao at
WEF -202:
(Global healthcare major, Novartis CEO, Vasant Narasimhan
Minister KT Rama Rao discussed growth and expansion
Novarts
dershig team of the Chemo Group, led by
plans for the company in Telangana. The exisi
Capability Center in Hyderabad isthe largest capability center
‘a global pharmaceutical major in Ing
Schneider Electric will be expanding its operations
in Telangana by setting up its second state-oFthe-at
manufacturing faclity in Hyderabad. Luc Remont, EVP
Schneider Elecitic agreed to double the firm's capacity in the
state. As Telangana continues to grow, firms like Schneider
will play @ crucial role in meeting the energy
management and automation needs of industries.
Telangana has much to offer to intermational investors
Although it is ia, formed barely a
decade ago, Telangana has been blazing a trail
development alongside accomplishing various socio-cultural
too. ks per bled
cover the last seven years to stand at twice the national average
and it has consistently ranked among the top three states in the
uray, in terms of Ease of Deing Business Ra
ha the single-vindow approval process TSPASS, in
India. Ensuring that approvals lake no longer than 15 days has
made tthe quickest approval processes in the country,
16 youngest state in
achievements
apita income has neatly oi
The state
Telangana is also known for its. state-ofthe-art
infrastructure and is home to some of the large. firms
In the world, with its top class industrial parks that offer
‘prehensive amenities at extremely competitive prices.
Technology giants like Amazon, Google and Microsoft,
_ameng oshers have significant business bases in Hyderabad,
‘Among its mary remarkable infrastructure achievements
in the state is the muli-purpose itrigation project on the
Godavari River in Kaleshwvaram, which is currently the world
largest multi-stage lift inigation projec
Ih the sphere of life sciences and pharmaceuticals,
Telangana has clamed the honour of being the vaccine
capial of the world, with one third of all vaccines produced
in the state. Major drug manufacturers have set up RED ai
pr
Pharma City, which is spread across 19,000 acres, is poised
fo become the world’s largest pharma cluster. The state has
a stiong aerospace ecosystem with both local and glotsl
manufacturers present in Telangana, eatning it the prestige
being the best state in India for Aerospace and Aviation.
In terms of living and lifestyle. Telangana prides itself on
cities lke Brand Hyderabad, which was ranked by Mercer 3s,
the most liveable city in India for 5 consecutive years. Its,
also home to top-anked educational institutions in In
with prototypes like the Telangana Academy for Skill a
Knowledge, which offers state-run skillng program
in the country.
luction centre: within ts bouns LeaderBoard
INTERVIEW
‘It used to be lonely at the top.
Today, it’s much lonelier’
Executive coach Marshall Goldsmith on the significance of ‘others’ in leadership,
new and growing fear of social media among leaders,
and the importance of letting go at the right time (MARSHALL GOLDSMITH, ONE
ofthe leading executive
coaches in the world, has
worked with and coached CEOs of
‘over 150 companies, teaches
‘executive education at Dartmouth
College's Tuck School of Business, is
founding partner of the Marshall
Goldsmith Group, and was named the
world's most influential busines
thinker on the Thinkers50 list
Heis also New York Times
bestselling author of numerous
books, some of which have been
translated into 28 languages.
Goldsmith speaks to Forbes India
about the tendency of winners, and
breaks themyth of achievement and
happiness being dependent variables,
and his latest book, The Earned Life.
Edited excerpts from an interview:
QHow would you describe
leadership in a sentence?
Working with and through others to
achieve objectives. And the keyword.
in this sentenceis the word ‘others’
(Q You have worked closely with £0
‘many leaders and CEOs. Are there
‘common qualities or behaviour
pattems that you have noticed?
was interviewed by the Harvard
Business Review and asked: What's,
the number one problem ofall the
successful people you've coached
‘over the years? My answer was
Winning too mach,
If there's anything important, we
wane to win, something meaningful,
we want to win, critical, we want
ivial, we want to win, and
life who are winners not to constantly
go through life wi similarly,
it’s very hard for smart people notto
prove howsmart they are all the time.
‘Q.Are people born leaders or does
one learn leadership over time?
Well, all the leaders that ve ever met
100 percent have been born leaders
‘The only important question s:*Can
Approximate numberof compares
‘whose CEOs Marshall Goldsmith nas
leaders become more effective?”
‘And the answer to that is definitely
yes. I wrote an article, ‘Leadership
-a contact sport’ and it shows how
leaders get feedback, they talk
‘0 people, they follow up, they get
better...so you can definitely become
better as a leader.
Does good leadership and
feeling of contentment, of
happiness, go hand-in-hand?
No. This isone of the great myths in
life. Leaders are great achievers. They
may or may not he happy after they
achieve something. If you've ever
read the Bhagavad Gita...its essence
Ithatl you never become attached
to results, and you never place your
valueson human beings based on
results. Happiness and achievement
are not the same thing.
How different should
the leadership style be
for a founder and CO?
It’s very hard for a
founder to let go. One
‘of che biggest problems
with afounder is
that while scaling a
‘company, they have to
learn to delegate and let
9. This is probably the
biggese challenge. CROs don't have
this inherent challenge.
"EOs are not the owners, so they
need to learn that the decision.
makers make the decision, and they
work for the owners, but they are not
the owners,
Qt isthe biggest fear or
apprehension among the leaders
you have met? And how do
you ask them to tackle it?
Tam goingto answer a new fear and
apprehension, and that is‘social
media’. Today, anybody can get
crucified by saying anything. And
leaders have to be phenomenally
‘careful about what they say, because
anything they say can be taken out
ofeontext, put on social media, and
people can laugh at them. That’s a
new fear that wasn'tthere probably
20 years ago...not nearly as much
asitistoday. There's saying, “It’s
lonely at the top”. Itused to be lonely
atthe top. Today, its much lonelier
atthe top. It's very lonely at the top
right now.
QWhat leadership advice
would you like to give young
startup founders?
‘The advice I have for young people
in general is something that Peter
Drucker taught me. He ssid that
exery decision in life is made by the
person who hasthe power to make
the decision~make peace with that.
It’s not made by the smartest person,
orthe best person, or the fair person,
or the good person.
Your job in life
tomakea positive
difference, not to prove
how smart you are
For example, t need
to influence you, and
you have the power to
make the decision
then the one word
to describe you is
‘eustomer’, and the one
word to deseribe me is
‘salesperson’. Customers
never haveto buy. but salespeople
always have to sell. The younger you
are when you learn that lesson, the
better you'll be in influencing people,
the happier your life will be.
‘Q.Who has been your inspiration?
My inspiration are people like Dr
Paul Hersey, Warren Bemnis, Peter
Drucker, and many other people who
have endorsed my book.
In fact, the first thing I write in
the book is, “in my 50-year career
asan education coach, I am blessed
to work with many of the greatest
leaders in America. In theory,
am supposed toteach them, but in
practice, I have learnt far more from
them than they havelearnt from me.”
‘UY 1, 2022 “FORRES INDIA CELEBRATING INDIA'S
VARUN |
BERRY |
ir PAWAN
NARENDRAN MUNJAL
Britannia [Tata Steel | | Hero Motocorp IMPACT CREATORS on
INDIA
Forbes
Loh
SALIL RAJESH
PAREKH GOPINATHAN
| Infosys | TCS
THE LEADERS WHO LEAD FROM THE FRONT
BY SPOTTING OPPORTUNITIES IN CRISES oO
sit jetlag? Why is my mind going numb?
Am I dreaming?” an inquisitive Gaurav
‘Munjal wondered after a spate of whirlwind
‘meetings. “Iwas just absorbing and writing. 1
was not reacting.” recalls the co-founder and
chief executive officer of Unacademy who
was in New York with friend Roman Saini
It was a gruelling week. The co-founders of
India's biggest online test prep platform had
pitched to over adozen hedge funds for their
next round of funding over six days, and they
were exhausted. To make matters worse, a
bunch of deep-pocketed funders, who we
‘more than keen to meet the founders just
a few months ago, played truant. “It was
ing. They were the ones chasing us
and now they disappeared,” says Munjal
‘What, though, perplexed Munjal the
most was an eerie noise. “it was aloud voice,
& andall investors said the same thing,” he
The die-hard fan of Harry Potter
‘good sign, ding world. This
is what Ron Weasley, fictional character Relate nova
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‘world, the warning was real, and
ominous. “You guys are about to
hitan iceberg.” said one of the VCs
(venture capitalists), alluding to an
impending bitter winter freeze in
funding in the startup ecosystem
globally. “You still have some time
to manoeuvre” was the advice
for the unicorn founders if they
‘were keen to heed the warning
‘Three years ago, in 2019, a VC
in India was pushing his luck with
the maverick founder. “In justone
fiscal, your losses have zoomed from
290 crore in FY19 to %300 crore
in FY20,” he sternly conveyed the
message, underliningthe%3.22crore
losses Unacademy posted in FY17.
“Lknow my maths.” Munjal curtly
replied. “I will either go big or go
home,” he retorted aggressively
and nipped the conversation,
“He was in no mood to listen,”
says the VG, requesting not to be
named. “Hyper ambitious founders
don't like tobe counselled,” he
says. In June 2019, Unacademy
raised $50 million in its Series D
round of funding from a battery of
backers such as Steadview Capital,
‘Sequoia India, Nexus Venture
Partners and Blume Ventures.
High on a funding stercid,
‘Munjal was in no mood toslow
down. And he was probably
playingthe right game. 2010 was a
different era, and the markets were
rewarding aggressivegrowth. The
FORBES INDIA* JULY, 2022
only talking point was how much
‘can one grow. From a hefty 50
percent year-on-year growth to an
ambitious 100 percent and even an
unrealistic 200 percent was what
entrepreneurs would aim at, and
‘Ves would lustily cheer from the
sidelines, egging the founders to
sprint ata lightning pace. The VCs
rooted for the hest magician who
could travel at supersonicspeed
akin to Harry Poster's broomsticks.
‘Munjal was one of the magicians
“Lbelieve technology is magic.
‘The best products are magic. Look
at Tesla; it's magic,” he says,
Meanwhile, in New York this,
May, there were clear signs that
the magic show was about to end,
“Pehle profitability dekho, thoda
SAMEER BRIJ VERMA,
MANAGING DIRECTOR,
NEXUS VENTURE PARTNERS
bahut growth kar dena (Firs
at profitabil
modest growth),” advised one of
the Indian VCs working with 2
¢lobal fund, Curious, Munjal asked
a follow-up question. “Can you
‘quantify theda bahut?™ heasked
with a broad smirk. The investor
smiled. “It means 5 percent or 10
percents” he said. “I'm like seriously?
was shocked,” Munjal recalls.
‘The second set of dos was even
more interesting: Focus on unit
‘economics and free cash flows.
‘These words-unit economics,
‘cash flow, profitabi
‘cash—werenot only
also the world in which VCs were
using such terminologies looked
like a different planet. “Such
‘words were alien since 1 started
Flattoin 2013," says Munial,
‘who co-founded the real estate
platform for college students and
bachelors~which was acquired by
CommonFloor.com in April 2014.
“We have had a 14-year bull run,”
says Munjal, who was about to
hear a horror story from another
VC. Atthe peak of the dotcom
bust in 2000, the funder pointed
‘out, parking garages wentempty.
“Ip freaked me out,” he recalls.
‘SPEED, CULTURE AND
LONG HOURS.
Back home in India, for the first few
years since co-founding Unacademy in 2015 along with Roman S
and Hemesh Singh, it was time for
ascetion of employees to freak out.
“The reasons were many. First they
were strugglingto strike a work
life balance dueto excessive longs
working hours. “I quit because 1
couldn't get the time to do any other
thing,” says one ofthe employees
who left the edtech startup in
2018. "There was too much work.”
Back in September 2016, in one of
his blogs, Munjal gave a peep into
the life in astarup. n early-stage
startups, he wrote. you work six
toseven deys a week. “Personal
life takes ait, you don’thave time
toeven call your parents, forget
anything else,” he maintained.
“Two years later,
2018, a few months after the above
mentioned employee and many
more quit, Munjal posted another
blog. This time the message was to
convey why the edtech startup is not
aplace for everybody. “Ihave always
believed thatthe speed at which
‘we operate isnot everyone's cup
of tea,” he wrote. Kither the people
who join Unacademy, he underlined,
stay for 10 daysor 10 years. “Kither
they get so overwheimed with
speed, execution and intolerance
towards mediocrity that they
leave in 10 days” he penned.
‘There were other Feasons,t00,
for the heartburn among the staf
‘Munil’s deep obsession with
the quality of work meant less
tolerance towards mediocre work
and staff. “Whether it's during
the hiring process or i's during
the performance reviewsor its
letting someone go, we will not
tolerate mediocrity a any cost." he
underlined in his blog. The first few
years, the co-founder stayed true
tohis hardcore beliefs, and honest
but brutal assessment at times
bordering on insult~became the
‘orm. Murjal explains his mindset
daring the formative years. “I was
young kid who had no revenue
for the first four years,” he says.
December
Funding and Valuation
‘Series A (January 2017)
runpe: $4.5 million
[BACKERS AND VALUATION lure
YYentures, Nexus Venture Partners
Series B (September)
Funowe: $11.5 million
[BACKERS AND VALUATION: SAF
partners, Sequoia Capital india
Series € (July 2018)
runowe: $21 million
[BACKERS AND VALUATION: SAF
partners, Sequoia Capital india
Series D (June 2015)
ruwowe: S50 million
[BACKERS AND VALUATION: Steadview
pital, Sequoia india, Nexus Venture
Partners and Blume Ventures
Series E (February 2020)
Funowe: $110 million
[BACKERS AND VALUATION: Facebook,
General Atiantic, Sequoia india
Nexus Verture Partners, Steadview
Capital and Blume Ventures. Fipkart
CEO Kalyan Krishnamurthy and
Udaan co-founder Sujeet Kumar
Series F (September)
runowe: $150 million
[BACKERS AND VALUATION: SoftBiank
Series G (November)
[BACKERS AND VALUATION: Urcisclosed
amount: Tiger Global Management
{and Dragoneer Investment Group
(Secondary) January 2021
[BACKERS AND VALUATION: Tiger Global,
Dragneer Investment Group.
Steadview Capital and General
Atlantic purchased $50 mlion-worth
of shares from existing investors
Series H (August)
Funowe: $440 million
‘BxcKERs AND VAUUATION:Tomace\
SoftBank Vision Fund, Tiger Global,
General Atantic, ana Mirae Ascot
‘The message was either deliver
cor leave. “Some people don't like
‘that much honesty. They can't
bear that their work is mediocre,
and they can’t take blunt candid
feedback,” he rackons. For along
period, he points out, his Twitter
bio was ‘Mediocre teams don't
build great companies’ “I still
believe that mediocre teams don't
build great companies,” he says.
‘The issues snowhalled and people
‘sarted talking about the alleged
toxic work culture. The allegations
‘were a cultural shock for Munjal
‘who was always used to a hard work
life. A few years ago, he listed out his,
‘op learnings as an entrepreneur. A
few of thedos and don’ts daringly
sand out. “If you can’t give 1 to 16
hoursa day, doa’t startup,” was the
first. Ifriticism bothers you to the
pointthatyou can’etakeit, don’t
‘sartup. The third hits the bull's
eye. If youhave a moral obligation
‘tm be nice to people working with
you even when they are not doing
their job properly, and you must
tll them bluntly, don’t startup.
‘As anentrepreneur, Munjal saw
po wrong in his striet approach.
His detractors, though,
maintain that the environment is
‘emoralising. They point to the
chilling manner in which he shut
own the K12 business at the end of
last year, which reportedly resulted
in job loss for over 1000 people.
Munjal, however, defends the move.
“Nobody likes layoffs. But we have
to make the company survive,” he
says. “We need to ensure that the
company doesn’t die,” he adds,
underlining the uncertain nature
of thestartup ecosystem and the
need to take hard calls. Ia one
of his earlier blogs, he portrayed
the picture of the stressful side of
astartup life. “You're insecure,
you don’t know whst will happen
ext. You're not relaxed,” he
‘wrote, justifying why this flue
‘sate of mind isnot a bad thing.
“Itsomehow pushes youto your
suy 12022 *FORKES INDIA eS,
—_r
limits. Remember, Batman could only
climb the prison when he climbed
without the rope,” he mentioned.
Fast forward to June 2022. Munjal
has started to realise that there is no
Barman without Gotham. A viraual
‘meeting with Reed Hastings, the co:
founder of Netflix, in November 2020
drove homethe point that Ratman
needs Gotham and its citizens.
‘Hastings made Munjal understand
that ifthe job of the employeesis to
help grow the company, the founder's
jobis to help the staffachieve their
goals. “They too have life goals,
And their life goals cannotjust be
about Unacademy,” says Mun
who has been trying to rewire
himselfover the last year or so.“I
wouldn't call our culture toxic”
He explains what went wrong.
Till 2019, Unacademy didn'thave a
business model. “So nobody focussed
particularly on culture,” he says.
‘Though the edtech startup focussed
ondiversity, nobody defined culture
TINA BALACHANDRAN,
SVP TALENT AND CULTURE, UN-
ACADEMY
oe
in the form of a playbook. “Ther
‘was only one culture, and it was
of winning. Hamein jitna hai (We
have to win)" he says. The rules of
winning, though, were clearly laid
‘out: No mis-selling, not making
sub-standard products and winaing
through strategy. “I have not had a
oud debate with most people in my
leadership over the last one year,”
he claims,
month we are getting better
Munjal’s focus now is on building
the right culture. “I wake up and read
top five priorities every day. Culture
is one oftthem,” he adds. He has also
stopped being ruthless in sharing
feedback. Attimes, the feecback
vwasso brutal thatie had a negative
impact. “Now, I don’t do that,” he
says. The objective now is to inspire
people. “I don't want the person to
feelbad,” he says. The magic, he
reckons, lies in inspiring the person
and getting the best out of them.
‘Every quarter, every
WITCHES, WIZARDS, AND
HARRY POTTER
‘The magic, though, is not confined
to the transformation that Munjal
is seeking by trying to reinvent
himself. e's in the air across the
two expansive floors of the mult
storeyed buildingin Bengaluru which
houses the corporate headquarters
of Unacedemy. In fact, it starts from
The Roman Emperor
Adoctor, an IAS officer,
guitarist and an entrepreneur,
Roman Saini keeps a firm
eye on Unacademy’s pulse,
content and rhythm
By RANI SINGH
‘oman Saini made it
to the best medical
institute in India
in 2008, completed
his MEBS from
AIMS, and was working as junior
resident doctor in the psychiatry
departmentof AIMSin early
2014. Then, in the sweltering heat
of May, Saini found himself on
the hot seat at his maiden UPSC
interview. Sitting across the table
‘was a senior IPS officer, along with
FORBES INDIA* JULY, 2022
a bunch of other seasoned babus.
‘The first question was on
expected lines: “Why does a doctor
‘want to join LAS?” Replied the
22-year-old. “I wanted to make a
‘mass impact with my work, and 1
found medi
todo that,” he sald. ‘the feedback,
though, was most unexpected.
“Don'tgive me this nonsense,
bullshit reply that every doctor
gives,” fumed the IPS officer.
‘The caustic remark came asa
searing ‘bullet. “I was badly hurt,”
recalls Saini, who prepared for the
‘medical entrance because of his,
family history. There were over
a dozen doctors in his immediate
and extended family. “Everybedy
isa doctor. So you too become
cone,” was the advice from hi
family, and Saini slogged hard to
make it fo AIIMS. Now, he wanted
tobecome an administrator to
ensure that his reach, andimpact, emi) Unaeaderny
Unacademy in Numbers
