Pune: Customers do not purchase technology; they buy solutions to their problems, stated Anand Deshpande, founder, chairman, and managing director of Persistent Systems, during a talk on Scaling Technology Startups at Venture Center on Friday.
Key Insights on Startup Growth
Deshpande emphasized that identifying a problem and solving it is the correct approach to acquiring customers and scaling a startup, rather than building technology for its own sake. He outlined three essential aspects for technology companies: sales, teams, and funding.
Real-World Example: MRI Machines
He cited an example of a company selling magnetic resonance imaging (MRI) machines that struggled to find buyers despite sophisticated technology. The company later repositioned its product not for its technology but as a way for hospitals to increase the number of scans and generate profit. It even transformed the intimidating MRI scanning experience for children into a game-like activity.
Building a Niche
Deshpande urged new players to carve out their own niche rather than competing in markets dominated by others. Using the example of Paper Boat, he noted that the company did not copy Coca-Cola or Pepsi but instead entered the Indian flavors market. He highlighted its storytelling-driven packaging and a strategic tie-up with an airline before retail availability, emphasizing that emotional branding resonated with buyers and fueled growth.
"Be a leader in your market. Choosing a category correctly to become the leader in the market is the key to success," he said.
Company Culture and Funding
Deshpande further stated that people join a company if it has a realistic and compelling mission along with a strong culture. "Not everything can be written down. Having a belief system is important in a company, and it is crucial to act accordingly all the time," he explained. Regarding funding, he cautioned founders against approaching venture capitalists without a clear path for investor returns through IPOs, acquisitions, or future investment rounds.
The event also featured the launch of CanDid Vol 2 by N Ramakrishnan, which documents journeys from Venture Center's startup ecosystem.
