Anupam Mittal, an entrepreneur and popular Shark Tank judge, has defended founders and chief executives officers who step down from their posts, calling it a sign of ‘maturity’, saying it is ‘not a failure’.
In a LinkedIn post, Mittal said that the long-held idea that a founder must also remain CEO is outdated, a belief he noted many Indian founders have followed for years.
Mittal's remarks came shortly after Deepinder Goyal stepped down as Managing Director and CEO of Eternal, the parent entity of food-delivery platform Zomato and quick-commerce firm Blinkit.
Why is resigning after a point crucial? Mittal explains
The Founder and CEO of People Group said that startups today are growing faster than founders can grow as managers. He added that systems which work for a team of 10 often fail at 100, while those that work for 100 employees may break at 1,000.
“Most founders are great at 0 to 1 and 1 to 10. But beyond a certain growth curve, companies need a different skill set,” he said.
Mittal also noted that in global markets, it is common for founders step aside and let professional CEOs take over. He said such as practice is ‘encouraged’ because the company benefits from it, the founder retains the upside, and in most cases, shareholders are better off.
“In India we dramatize this as ‘fired’, ‘failure’ & even ‘fraud’. Most of the time it is none of that” he asserted, adding that making oneself replaceable should be one of the key goals of every founder.
Mittal further noted the approach of founders stepping aside is what helped companies such as Google, Apple and Microsoft become enduring industry leaders. He further emphasised that, more often than not, it simply reflects the founder's choice to prioritise what is best for the company.
Why did Deepinder Goyal step down from Eternal?
Earlier this week, Deepinder Goyal stepped down from his position to pursue a new set of ideas he has felt drawn to for quite some time.
Explaining why he stepped down as the CEO, Deepinder Goyal mentioned in his letter to shareholders that he has lately felt drawn to a new set of ideas that involve risks and experiments, which are only possible outside the company.
His resignation also comes amid intense public debate over gig work and labour conditions.
In recent weeks, Goyal, who has been vocal on social media in defending Zomato and its affiliate Blinkit's gig model, faced backlash after delivery worker unions called for nationwide strikes on December 25 and 31, demanding better pay, social security and safer working conditions.