According to an article on the Economic Times, Housing.com's three out of 12 original co-founders have just left the company. The company was launched only two years ago, back in 2012, by a dozen students from the Indian Institute of Technology Bombay (IIT-B).
Housing.com quickly made its presence known in the Indian property realm, and went on a hiring spree, recruiting 100 students from IIT-B.
In June of this year, the company raised Rs.115 Crore (US$19 Million), and declared its plans to map 10 million houses on their website in the next couple of years, as well as aspirations to expand abroad.
So what happened? Why would a quarter of Housing.com's founders all of a sudden leave such a promising company?
Rahul Yadav, CEO of Housing.com said that the company changed its business model at least three times, and if a co-founder at any point didn't fit the company's role requirements, they would be "placed on the bench." Because of this, some of these individuals have left Housing.com.
Investors are of the idea that, startup companies should be clear as to what a co-founder is able to deliver before they join up. Anand Daniel, a principal at Accel Partners, said that more than three co-founders is always a challenge to manage. "People who don't fall in the category of technology, marketing or operations will always be a crowd," he added.
Retail entrepreneur Zishaan Hayath, who led the first round funding for Housing.com in 2012, felt that the company had been too generous in doling out the tag of co-founder to people who joined the team in its early days. "In an ideal situation, Housing.com would have 6 co-founders and 6 early employees," he said. When Hayath backed the firm, it had six core members. "If Rahul Yadav, Abhishek Anand, Snehil Buxy, Ravish Naresh or Advitiya Sharma left, that would worry me."
Housing.com investors Helion Venture Partners and Nexus Venture declined to comment.
The above article was sourced from the Economic Times.