I remember having a chance to invest in Weddingz’s proposition in December 2017, about eight months after we started Samyakth Capital for identifying and nurturing disruptive Indian start-ups. As a tech-enabled full-stack wedding company, it was out to do something that had never been done before. It simplified wedding planning while adding value to vendors and contractors. Sandeep Lodha, the former Executive Director of Walt Disney in India, incubated the company in 2015 to tap on this recession-proof opportunity.
The concept was innovative and intriguing and Sandeep’s sincerity had impressed me thoroughly. His professional and educational pedigree was impressive. Moreover, he truly believed in decision-making through consensus and was always open to incorporating feedback.
It was a union that the team at Samyakth Capital contemplated and mulled deeply over. The discussions eventually lost momentum in multiple back and forth on the negotiation table. Eventually, the talks fizzled out and our nuptials were called off because of overanalysing the prospects and reluctance to back my gut . Both of us moved on.
As we know, OYO acquired Weddingz and it went on to become one of the biggest and fastest-growing wedding planning companies in the country. The partnership with OYO combined its asset management and technology capabilities with Weddingz’s scale. In the following 12 months, the company’s revenues increased by an exponential 480%. During this period, OYO Weddingz has witnessed a dramatic growth in supply, leading to an upsurge of 636% in bookings. From two cities and 26 venues in 2017, its reach has expanded to over 30 cities today where it manages over 750 banquets.
This experience emphasised my learning to evaluate an opportunity in the context of a broader perspective. While the wedding industry in India is sized at $50 billion, its hospitality industry is much larger. By acquiring Weddingz, OYO ramped up its string of pearls strategy and added significant value to its ecosystem of offerings. Secondly, focus on the long-term potential of an opportunity instead of negotiating over short-term earnings. Its important to believe in the vision and conviction of the founder. Lastly, it pays to play cupid sometimes and turn blind eye to one’s overanalyses!
As James Graham puts it, “Love is blind and marriage is the institution for the blind.”
Aalesh Avlani, Founder and Managing Partner, Samyakth Capital
News Source : LiveMint