'Never Let A Crisis Go To Waste': Myntra's Mukesh Bansal On Understanding The Start-Up Game

Crises define entrepreneurs, and Mukesh Bansal, the brains behind industry giants Myntra and Cultfit, spilled the beans on how he overcome massive setbacks in his entrepreneurial journey of 25 years.

In conversation with NDTV Profit, Bansal recalled the day when Myntra hit rock bottom in 2013. "We had no money left in the bank. We had a company with probably 300 employees, lots of customers, and we were going to hit the payroll in just 7–8 days. It was pretty clear to us—at least some of us who knew the full picture—that it's very difficult we’ll be able to make it."

At the time, Tiger Global's Lee Fixel had extended his support by wiring $5 million, which bought Myntra six months to turn things around. "I think it boiled down to communicating to him that we really believe in things. I think it's really working; we can make it work, we need to navigate the next few months somehow, and then the business will work out. To his credit, he believed that," Bansal said.

When dealing with an entrepreneurial existential crisis, Bansal's advice is pretty clear—first and foremost, acknowledge the crisis. Living in denial would serve no good, he said. Start from a blank slate, look at the issue long and hard, and make bold, decisive moves. That's his mantra for crisis.

During the pandemic, Cultfit faced a similar crisis again. "Revenue went from 100 to zero overnight," Bansal said, claiming that theatres and gyms were arguably the most affected sectors. "But see, there's this line which says, 'never let a crisis go to waste'. We got rid of the bad stuff, and doubled down on the good stuff."

"I used to shop online a lot, experienced the dot-com boom."

Bansal credited the dot-com boom in the US for inspiring him to launch Myntra on his return from the States. "It was a given that it's going to take off in India also at some time, but no one knew when," he explained.

The idea for Myntra came from both personal habits and observing market inefficiencies. "I showed up in the mall in the afternoon on Thursday, and you can imagine how many people were in the mall—nobody. I was walking around, seeing every floor filled with clothes, footwear, and accessories, and not a single customer. It felt like such a waste. All this inventory should be online as well."

"AI is a threat as well as an opportunity," said Bansal, calling it "the most significant technological shift of all times". However, he acknowledged the potential disruptions AI could bring. "Some jobs will be lost, there's absolutely no question about it. But I'm optimistic it will also lead to the creation of a lot more new types of jobs," he said.

"Writing about AI, investing in AI have both gone into overdrive in the last one to two years," said Bansal.

Investors should not expect returns in such short a span of time, he said, mentioning that it would take a considerable amount of time for the maturation of AI.

"Startup is like a marathon—you need staying power," said Bansal. He doubled down on the importance of adaptability: "Strong opinions, loosely held. As an entrepreneur, you really have to believe in something, but you should not be so married to it that you go down with it."

He also spoke about fostering a transparent work culture. "I do not believe in creating an explicit hierarchy," he said, adding that fresh talent can change a company's culture and introduce new ideas.