The speed of scaling up is one among the myriad challenges startups face today. Every now and then they are posed with the question of whether to launch in multiple cities at high speed to attain market leadership or to take a slow and steady pace of city-by-city launch to establish a strong base and replicate.
While the likes of Zomato, TinyOwl and PepperTap have had to scale down their operations over the past one year, a few companies like NearU and SparesHub believe that with the right strategy, speed scaling through multiple city launches could be the way to go.
“Everyone told us launching in multiple cities in a short span of time would be a bad idea,” said Hemanth Meka Rao, founder of deal discovery app NearU. “When we’re a startup, how can we function like a big company and be present in multiple cities right away?” Founded in June 2015, the Mumbai headquartered startup is present in 30 cities with offices in eight of them. It plans to expand the presence to 10 more cities from early next year. “We are doing this by keeping our costs and the team siz ..