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Rahul Yadav, 26, co-founder and CEO of Housing.com, has been the most controversial entrepreneur of India this year.
In a candid conversation with members of social networking and news website Reddit during an ‘Ask Me Anything’ (AMA) session today, Yadav talked about his image, his company and what he thinks about other entrepreneurs and startups.
Here are some edited excerpts from Yadav’s Reddit AMA so far…
On recent controversies
What was the deal with Sequoia Capital? For science, Can you tell us what 'other bad things' were you referring to in your email to the VC?
We decided a slided deal between 10-15% (depending on performance) for 1mn$. After 2 months of due diligence, when they realised we were running out money, they said they want to do a flat equity deal. I said ‘Okay. Let’s do it at 12.5%. They said 14.75%. When I requested more, they said “Let’s not waste each others’ time.” We were left with no option. I came to know they have done it with lots of other ventures (TFS, Ola, Dexetra, LetsBuy..) So to cut it short, I think they’re culturally a very cutthroat VC and sometimes I think that’s why they’re more successful than others. But I still condemn their practices because I feel they’re inhuman and for me, people are the ‘why’ for everything I do.
If you are here to solve problem then why you wanted to quit before solving it?
It was just a well-calculated tactical move.
What made you ask Bhavish of Ola and Deepinder of Zomato to ask them to allot half of their shares to employees?
Success of a venture is a team work. Although all startups give ESOPs to their employees but the problem is it’s not PROPORTIONAL to the value creation. Value is being created at x rate and is being given to the employees at y rate. x not being equal/proportional to y is the real issue. So these two names came up in my mind and I just nominated them.
Is the zomato ceo really a d-bag?
I really don't know him much but his sense of humour sucks.
Can you create even 1% of housing.com without funding from VC ?
I can create 100% of housing but then it will be a different type of housing. You can always create business without money, sometimes it can be slow, sometimes it can be really hard but its never impossible.
Do you think you actions are going to be harmful for young entrepreneurs as VC's might now believe young Indians can't handle success?
I think the market should wait before passing a judgment on whether I am helpful or harmful for the young entrepreneurs.
Don't you feel that your efforts should be more concrete in building an image that is fitting of a CEO of a growing organization instead of indulging in unnecessary shenanigans?
I think whatever issues I have raised are very important for the Indian startup ecosystem.
Since when did abusive language become a part of corporate communications?
The way boundaries between emails and chats are fading, I see professional diplomacy and frank conversations merging together. That's the future of conversation: quick and efficient.
Do you think your actions are distracting for your employees?
Yes, it is distracting. But it's actually fun if it's there only for a few weeks. Beyond that, it's really distracting and does not help.
On Housing.com
Out of all the products/services, which one do you see as the actual game changer and which one is likely to be the highest revenue generator?
Rent, PG, short stays, hotels are just the form factors of rental real estate. I see the boundary merging between these in future. We're also working on the fundamentally changing on how houses are built (end product), that I feel will change the game in long term.
Why 'Look Up' ?
Because when you Look Up you only see people who are ahead of you in terms of greatness and achievements. No matter how much you have achieved in your life, the moment you Look Up, everything gets reset and you find yourself again at level 0.
Why do you claim to have beaten Common Floor and Magicbricks based on site visits and app downloads? Aren't they bullshit metrics?
Yes I believe these are really bullshit metrics. But the market (brokers, builders, investors, media) somehow cares about all these things. And perception matters. So unfortunately, we have to play by THIS (India) market's rules.
How do you recruit employees? Does CGPA, board % matter in selections and at work?
All teams have their own style of hiring because they have full freedom. My personal hiring style is : I hire smart people (Smartness can be judged by their past track records or by asking few tricky questions ) and ask them to commit that they will deliver. I really make people commit because everything is simple and if you're smart & committed, it's done.
I really need to get hired by Housing. What exactly should I do besides stalking you and your friend's facebook profiles and bombarding their mailboxes with multiple resumes? Serious
Drop me an email at rahul[at]housing[dot]com with the subject 'Why you should hire me' and explain it in just 3 lines.
Along with verified photos can we also have the legal status of an apartment ?
On it! We just acquired a legal and due-diligence company, they are working on cross checking all new projects that are on Housing's platform.
Will Housing.com ever get into listing commercial properties? If not then what do you think of its viability?
A team at housing is already exploring commercial real estate and working on 10X solutions.
What are you doing about the high attrition rate at Housing?
Our entire tech team (100%) consists of freshers, so people do go for MS/MBA etc. Other than that its one of the lowest in the industry.
I'm joining the tech team of Housing next month. Do I also get a portion of your shares, or was that only for existing employees?
At Housing, we are increasing ESOPs pool as well simultaneously. One thing I can promise that there will never be dearth of rewards at Housing. Welcome to Housing!
How is DSL i.e Data Science Lab coming along ? When and where can we see that data making difference ? Apart from heat maps section.
A lot of features require a lot of data which we're still in process of collecting. DSL is a long term bet for Housing, without data you cant solve the Housing problems. Be patient!
On entrepreneurship
What are the 3 most important things that contribute towards a startups' success in the Indian startup ecosystem?
I think currently it is: Validated and copied idea from another market, Capital, Marketing. What I think it should actually be: Solving Indian people's problem, Great product and innovation, Great teams and culture
Do you think it’s required to be mean to make a startup successful? If yes Please share an instance you got mean for your startup
There are no rules! I play by the situation.
I am 26 years old engineer and people like you have made lives of likes of ours a living hell. Every single time your name comes up I am told by my family "Arre us rahul ko dekho.. he Is a crorepati at your age".
Tell them, he's not anymore!
How about some tips for entrepreneurs on self-promotion, pitching to VCs and the right way to do PR?
Be Obsessed about solving the problem, Work hard and Be Optimistic. Surround yourself with great people, rest is just a cake walk. VCs, PR etc will automatically follow if you are doing good.
On startup ecosystem
Do you think startups in India are currently overvalued? Do you think it is indicative of a bubble? How long do you see these valuations lasting?
Indian market is an elephant. It's gonna run/grow slowly. People/companies with patience over a period of 5-10 years will be able to leverage the opportunity. Companies which will survive in this period, for them the current valuations are nothing, given the opportunity size.
What are some startups you are personally following and love what they are doing ?
Uber and Twitter, slick products solving big problems.
If you are given a chance to redo OLA, what will you do?
I will never do Ola because that problem was already solved by UBER and in a brilliant way. I'll never do a me-too thing and waste my life.
Your opinion on Myntra going app only and shutting down their website?
Key people's focus in the company is very important, so its great that they have decided to go app only. Thumbs up for their bold decision.
You've mentioned that there are very few Indian start-ups that have your respect. Which are a few of these?
Flipkart, for maintaining relative quality (in product, service and culture)… They have earned respect in terms of implementation and execution and not because of the idea.
About self
Do you think investors will back your next startup after all the controversies?
I think they will but it really doesn't matter.
Your arrogance and attitude shows that you are the only savior left in the world and without you the world of housing was dying?
Even the US market players (zillow, trulia etc) have not really solved the problem. Yes we do think that we are the best bet to solve this problem. Arrogance and attitude comes when people poke and distract us from solving this problem.
What you would be doing, if you have left Housing.com ?
Never thought about it. But I love animation and visual effects and wanted to pursue it from Vancouver Film School but couldn’t afford their high fees at the time.
Why did you decide to drop out of IITB in your final year?
I think I mentally dropped out of IIT in 2nd year. Physically in my 4th year. And on papers, I think I’m still an IITB student. :)
Are you afraid of anything or do you think what others think or write about you?
Perception matters and does have impact on your success but i think i can handle all these things smoothly. So not really afraid.
How do you justify your statement, "it's too early in life to get serious about money etc." when you own a Porsche Cayenne?
I 'want' to buy and media made it 'bought'. I use a rented car.
What are your priorities in life. Money or work? How much money is enough for you?
For me fun is more important than anything else!
How do you define success and how do you measure up to your own definition?
Life's purpose is to be happy! So if you are happy, you are successful in life.
When do you wake up?
Anywhere between 8:30am to 10am.
What are your favorite books? and which book you read recently?
I have never read any book in my life (except the course books, and that too rarely)
Do you watch chota bheem ?
Bhai pichle 11 saal se TV nahi dekha hai.
Indica or Sativa?
I had to ask my friends around about what it means and they told me these are two strains of marijuana. btw, I'm a big fan of butter milk :)
What would you do differently if you could live through the last year again?
I would have more fun!
Would you ever be a VC?
I don't like money at rest. Putting money to work is very important. And I'll keep doing so in whatever roles/formats are right at the moment.
