Lenny's Podcast: Product | Growth | Career

Kunal Shah on winning in India, second-order thinking, the philosophy of startups, and more

Mar 24, 2024

01:18:57

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Discussing the success of Indian immigrants in tech, challenges and opportunities in the Indian market, the Delta 4 product framework, the power of curiosity and second-order thinking, and lessons from building CRED. Also, exploring user acquisition and revenue generation in India, founder's evolution, feedback and curiosity for success, second-order effects and decision-making, and product utility and positioning strategy.

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Quick takeaways

Successful Indian CEOs embody principles akin to Dharma, sustaining founding values.

Indian startups face challenges of high user acquisition and low revenue per user.

Curiosity is crucial for entrepreneurial success, fostering adaptability and innovation.

Deep dives

Building Successful Companies in India

In India, successful CEOs like those of Microsoft, Alphabet, and Adobe are emigrants from a culture that values principles akin to Dharma, sustaining the founding principles. Indian startups face the challenge of high user acquisition but low revenue per user (Dows vs. ARPU), necessitating a focus on adapting to unique market dynamics by leveraging brand trust and catering to a low-trust market landscape. The focus on profitability in Indian startups remains a common concern due to historical trading roots, contrasting the capital-heavy approach of internet companies seeking growth over immediate profitability.

Value of Time in Indian Jobs

01:26

Delta4 Framework

02:15

Focus on Solving Hard Problems

01:29

Sharing Knowledge and Learning from Various Fields

01:29

Introduction

4min

Unleashing Product Delta Four Framework

19min

Navigating User Acquisition and Revenue Generation in the Indian Market

15min

Exploring Founder's Evolution, Profitability in Tech, and Trolling Culture in India's Entrepreneurial Landscape

6min

Navigating Feedback and Building Curiosity for Success

14min

Exploring Second-Order Effects and Decision-Making

17min

Exploring Product Utility, Status, and Positioning Strategy

2min

Embracing Challenges and Evolution for True Motivation

3min

Kunal Shah is one of the most well-known and admired product leaders in India. He is the CEO and founder of CRED, an Indian-based fintech startup valued at over $6 billion. Prior to CRED, he founded three other startups, including Freecharge, which he sold for over $400 million to Snapdeal. He has also been an advisor to India’s most influential organizations. In our conversation, we discuss:

• The prevalence of successful Indian immigrants in top CEO roles across the tech industry

• Why companies in India can grow DAUs but not ARPU—and what that means for building products for India

• What most sets India’s market apart

• Challenges and opportunities in the Indian market

• The Delta 4 framework for building new products

• Lessons from building CRED so far

• The power of curiosity and second-order thinking

• Lessons from failure

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Find the transcript and references at: https://www.lennysnewsletter.com/p/kunal-shah-on-winning-in-india-second

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Where to find Kunal Shah:

• X: https://twitter.com/kunalb11

• LinkedIn: https://www.linkedin.com/in/kunalshah1/

• Podcast: https://www.youtube.com/@CRED_club

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

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In this episode, we cover:

(00:00) Kunal’s background

(04:22) The Delta 4 framework

(11:00) The success of Indian CEOs in the U.S.

(19:55) Challenges and opportunities in India

(23:04) DAUs vs. ARPU in Indian markets

(25:50) The perception of time in India

(27:55) The curse of focus in Asian markets

(30:33) Challenges and opportunities in India (continued)

(33:23) Lessons learned from building CRED

(36:40) Profit pools can provide valuable insights into the values of a country

(37:55) Founders’ role in company growth

(39:55) Profitability and Indian business culture

(43:24) Advice for staying positive amid criticism

(44:41) The promising market in India

(47:35) The power of curiosity

(52:59) Who Kunal looks up to

(55:31) Kunal’s favorite sources of content

(58:42) Asking great questions

(01:02:54) Contrarian corner: Wealth is nothing but storage of energy

(01:05:26) Failure corner

(01:08:57) Closing thoughts: Share your learnings

(01:09:38) Lightning round

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Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

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Lenny may be an investor in the companies discussed.

Get full access to Lenny's Newsletter at www.lennysnewsletter.com/subscribe

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