Sales of the company’s electric scooters are falling and customers are complaining about clogged after-sales service and an app that’s been offline since March.
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It is becoming increasingly clear that the startup ecosystem is stuck with building for the top 3% of Indian society. Now consumption in even this rarefied segment is under pressure.
The South Korean carmaker may have made headlines teasing an aggressive product push in India. But, the absence of details and urgency gives little respite to investors reeling from declining sales and a 12-year market share low.
The fund seems convinced that technology-led businesses in India are overvalued and not good for making big exits. Instead, what is needed to return large sums of capital are investments in mature companies with a proven track record.