When it comes to entrepreneurship, Kris Gopalakrishnan knows a thing or two about it. Having co-founded India's IT bellwether way back in the 1980s, Gopalakrishnan's journey with startups and entrepreneurs continue even to this date. After leaving Infosys in 2014, Gopalakrishnan co-founded Axilor Ventures, a company that supports and funds early-stage startups.
In a recent Rotary meeting held in the city, Gopalakrishnan traced back the journey of Infosys from a small startup to a global IT behemoth. Through a presentation 'Lessons from Infosys journey - Building a world-class business in India' Gopalakrishnan offers key advice for entrepreneurs to build a sustainable world-class business.
“There is no rule that startups should go for external funding, but many entrepreneurs believe that the goal in life is to get external funding,” said Gopalakrishnan. He also added that the moment startups go for external funding, the investors will run and govern the business and entrepreneurs can think only about returns and exit for the investors.
Recalling how Infosys ran operation through its own fund, Gopalakrishnan said many banks rejected the company's loan application to buy computers since they didn't have collateral. “It was the Karnataka Government that gave us a loan to buy our first computer, so we have shifted our registered office to Bengaluru,” Gopalakrishnansaid.
Infosys had free cash of $2 billion in March 2019,
Build a scalable business
“Infosys is often spoken about because of its sheer size and impact,” Gopalakrishnansaid adding that entrepreneurs should think of building a scalable and sustainable business model.
Rattling off the numbers, Gopalakrishnan said that from $120,000 in the first year, Infosys' revenue in FY19 stood at $11.8 billion with a market capitalisation of $48 billion.
“Infosys became a poster child of liberalisation because it’s not just about the growth of a company but the whole ecosystem,” he added.
Go for IPO
“I wish many of the startups today think about going to IPO, but most entrepreneurs seem to like being private,” Gopalkrishnan said. Citing the example of Infosys' IPO in 1993, Gopalakrishnansaid entrepreneurs today can take advantage of the dedicated exchange platforms set up for SMEs and startups.
Highlighting that Chinese, American and Japanese dominate the private investment space, , the IT veteran said, “As a result, most of India's successful startups have become non-Indian owned.”
Building a great business takes time
“Building a great business takes time, it's a marathon,” Gopalakrishnan said. He also noted that many entrepreneurs today want to become Mark Zuckerberg as soon as they start the business but, thousands of Zuckerbergs have tried and failed, but people don't talk about them.
He also highlighted that it took 23 years for Infosys to reach the first $1 billion revenue but the second billion came in 23 months and the third in just 13 months.
Be single-minded
“Till the time I quit Infosys in 2014 I was not part of any other Board,” Gopalakrishnan said adding that entrepreneurs should single-mindedly focus on growing their business without any distraction.
“But I see some entrepreneurs are already investing in other business while their own business is yet to succeed. So where is your loyalty to your own company or the company where you have put your money ? " he asked.