Why We Turned Down 12 Million Dollar Funding

We are bootstrapped since we started in 2012 and we have always been open to ideas and changes.

The reason we bootstrapped is that, we value time more than anything for us, we have always been faster and we move things fast, we make decisions fast.

When Intel launched a competition saying that the first 50 apps will get 1000 USD each. George and myself just two of us built and submitted 46 unique utility apps in just 2 days ( 48hrs working non-stop) and won 1000$ each. They didn't expect a single company to submit so many apps that they changed the rule next time that one company should submit only one. We have rapid application frameworks, components pre-built and we did design and developed so fast.

We decided we move fast as a startup building our idea rather than chasing behind investors with ideas and plans, convincing them. It's better to build something rather than running behind them. What we are doing is breaking every so-called template and corporate rules to run a company. We run our companies on values and wanted to prove a model where we can also make money giving value for people, build a greater ecosystem for people to work. It's hard to find like-minded investors like that here.

We always wanted to be a product company and we are always a product company at heart and mindset. We never do services like the typical big MNC’s which bill for hours and headcounts and body shopping. It's nothing wrong but we don't prefer that

We do great work and we see customers problems as ours and put ourselves into their shoes understand the vision and many times envision what we will do if we are the CEO of their company and we develop products and platforms or ecosystem to enable their business to next level

We never do small works or maintenance works just for money. We are technical ninjas we just go in execute get out. We do high professional work to deliver in 10x faster and charge a premium for our services

One of our friends met us in Mumbai who asked if you need funds in our dinner, as usual, Straight away our answer was no, we are good. I at least think a minute because I always experiment things but George never blinks eye :) he is very strong and focused on what we do and where we go.

The Friend said the investor is a very nice and young person who has heard a lot about us from him and loved us being ourselves and wanted to associate with us and our journey. When he was talking to our surprise. He got the call from the Investor he said he was dining with us and gave the phone to have a word, I spoke and he felt so good and got connected in just 5 mins.

We had an aversion for raising funds because of the stories we had heard about VC’s and we believe only entrepreneurs can understand entrepreneurs and not the lender sharks who lend money for huge profits

Twice we got very good offers for a small percentage of equity on the table but we had turned down both times.

We signed a project that did execute so fast, seeing our speed the MD wanted us to travel along with them so he can get delivery faster. He came to our table with a very Good Offer. George walked off the table asking me to discuss saying he is having a headache, the next day I emailed humbly saying a no to that good offer and the investor got angry that how we can turn down such an offer when there are many in line to close a deal with him. We said sorry we are not comfortable now. Let's travel in this project and let's see where it ends. We saw the other side face of the so-called nice guy :) after we turned down the offer he immediately cornered us by not giving us huge balance in that project money after spending 3 months of efforts, we were in a tough position in that time, he thought to having us in that situation we would take this offer but we walked off in style saying Wish You all the best in our style ??...

We are good for good and tough for tough.

We always never had fear because we never believed in someone to start the company and no can steal our idea, our dream, our passion, our persistence, and our hard work.

We believed in ourselves and God.

Poda Antha Andavane Namma Pakkam

( No fear ! as God is on our side )

Unnai Nambiya Business Arambichom ( Did we started the business because of you )

We always walk off the table and never bend our back for money. We respect people and expect them to be respected, be it our time and value on the table.

New Proposal For 12 Million USD From a New Investor:

The new investor spoke to us nicely. I felt a good connection he flew down from the airport straight to our office and liked us and our culture. He said he wanted to invest

We said these are our rules if you are fine let’s think over

1. We will not change the culture we run the way we wanted to

2. We give equity and you give money that’s the transaction

3. You will not be inboard and you can’t control or ride us

4. You can suggest good things and we are open but decisions are always ours

5. Peace of mind is important, end of the day we have to happily sleep so do you so it’s all trust and relationships.

6. You can’t involve in day-to-day operations

7. Emails are always allowed but No status calls or hourly meetings except 3-4 meetings annually unless there are critical business decisions

8. It takes 10 months for a baby to grow so it takes its own time for a business to grow.

He liked us and said he is ok for all the points. He said I just wanted to travel with you guys for the long term.

We found happy and then they requested for next level of meetings

I said before we discuss other terms and move ahead, while we appreciate and will invest our time in discussing with you and your team. You have to transfer 1 crore. This is just to check they are serious in investing rather than talking and wasting either of our time. I clearly said after sending advance let’s discuss on the table.

He transferred 25 lacs immediately and said he will do the remaining in a couple of days. I said stop, no need to send the remaining amount. I just wanted to check if they are serious. Now found they are serious.

Then few meetings happened with their investment banker, partners and they aggressively went and close the deal for 12 million for 30% equity with cash out of 4 million to founders. They emailed us on Jan 15th, 2019, the structure and the deal.

They wanted us to start the company in Singapore and they were ready to borne expenses. We had a lot of questions and they had a lot of questions it’s all shared and answered clearly in emails.

We said we will do the company registration in our expenses itself, we did that.

Then we could not meet the decision-maker, An Investment banker who was working the deal was planning to sit inside our office and already started the politics and game before even we even get into the deal.

We felt slowly there are trying to control, change the terms for which we had agreed, even before the signing of the term sheet with many conditions which were not as discussed initially, we have been trying to be patient but then everything was not in sync... they felt we are not cooperating ( Not Bending), they said they are giving money and we are not co-operating and we felt other way ... before even investing they wanted to have their person inside office and we were strong in our stand and our emails were so strong.

We sent a strong email " if you want to invest else no issues we will give you a 100% refund" let’s depart as friends rather than wasting our momentum and time.

Then they asked for a meeting in Mumbai which was not planned properly and within short time irrespective of that we booked the tickets even though we had no plans to attend unless there is a clear plan and understanding, they said the investor is not coming at the last minute and we have to talk to the other people, talking to nondecision makers is a pain and timewaster we had seen it many times. We said we will send our persons you can discuss with them and come to clear agreement, then they got pissed off, so in an email, it all ended.

We have Zero Ego we learn many things and embrace our people who work for us and learn. We try to be patient and give three chances always that's the time we give benefit of doubt and the environment but if they think smart and make moves and do politics we don't have time for that.

If you are bad then we are your dad :)

People around said it’s a 12 million good deal if you both could have compromised a little bit or be patient you could have knocked the deal.

We said we have self-esteem, let’s be honest and transparent rather than going halfway through and finding hard to travel. Success is not a destination it’s a journey

We are entrepreneurs with vision and dream if we have to compromise we could have been employees for our lifetime, even while being employees we had been this way. No fear ... Bayama Enaka ... Nerupuda ... we give value you give money ... we respect you, your time and we expect the same. Nobody is a slave here ... to anyone ... just because people have money doesn’t mean white is black or their bad jokes become good ones... be who you are ... be bold ...

Time will tell our future, we may be bootstrapped or time may come when we meet great entrepreneurs who may invest in our values, or a strategic investor partner and on us rather than bloating excel sheets called projections and a bullshit called business plans.

Except God no body can validate an idea

Time will come, when we make 1000 crores, our vision is to invest in 100 companies that will be invested across the table based on entrepreneur, people, trust, ethics, values, and passion just like how to hire without seeing resumes or any fancy tags IIT or IIM that associate pride and follow a trend like a herd, or a template formula.

Let’s break the rules