Nithin Kamath, the co-founder and CEO of Zerodha, recently shared his thoughts on why he prefers Bengaluru over other metro cities in India such as Delhi or Mumbai. According to Kamath, Bengaluru has a unique culture where there are no brash displays of wealth, and he has seen wealthy people wearing simple chappals. He believes that people in Bengaluru are less competitive than in other cities, and being less competitive is actually an advantage.
“I have seen fiercely rich people walk in chappals. You will never see that in Mumbai,” he told Mashable India.
Kamath thinks that people in Bengaluru don’t try to climb up by stepping on others, unlike other cities, which is a testament to the city’s unique culture. He attributes this to the “timid upbringing of being a south Indian,” which he believes is a special factor that has worked out well for the city.
What Kamath said about SVB collapse?
Kamath’s views on running a business are also insightful. He tweeted that running a business is complex and that many things can go wrong. He cited examples such as the recent collapse of Silicon Valley Bank (SVB) in the US and Yes Bank in India. Kamath advised businesses to be pessimistic and consider everything a risk, even if it seems small. He believes that every business will face a black swan event at some point, so it’s essential to have funds, especially working capital, distributed across several banks.
“It is ridiculous how many things can go wrong when running a business. Everything from rapid change to market sentiment to waking up one day and being unable to access money in the bank, like with SVB,” the Zerodha co-founder and CEO tweeted.
“Consider everything a risk and do everything you can to mitigate it. Every business will be exposed to a black swan event at some point; the idea is to survive those,” Kamath said. “The lesson from SVB or Yes Bank in the Indian context is to have funds, especially working capital, distributed across a bunch of banks.”
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