How Bureaucracy Led An Innovator To Suicide

Mangele

Village Elder
#1
After graduating from St. Aloysius College in southern India, he struck out into the provinces, eager to put Marx’s maxims to work raising the fortunes of the poor. This proved as impractical as military service. The countryside was rife with corruption and nepotism, impeding any progressive agenda. “India was so poor that there was no scope to become a Robin Hood,” Siddhartha said. “That’s when I realized that rather than being a wealth distributor, I should become a wealth creator.” see video:


He did just that, founding India’s largest coffee-shop chain, Coffee Day Enterprises, a $572 million-in-sales business (with more than 10,000 employees) that persuaded a country raised on tea to consume something else entirely. It made him a wealthy man, one of the richest in India and, for a brief moment after Coffee Day’s 2015 IPO, a billionaire. Siddhartha came to represent everything India dreamed of becoming: a modern nation where entrepreneurs could brew new ideas, changing their lives and the circumstances of everyone connected to them as a result. That’s a radical notion for a nation constricted by millennia-old rigidity around class, structure and expectations. Siddhartha was fully aware of this. “If I was born 20 years earlier, I would have surely failed,” he said in 2011.

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His industriousness was getting noticed. The following year, a group of investors, including famed KKR, put $200 million in Coffee Day for a 34% stake. Revenue was then around $200 million, and sales nearly doubled within four years, the point when Siddhartha took his company public. His caffeinated kingdom extended across India, to 1,513 cafes in 219 cities. But to keep expanding, Siddhartha grew addicted to something that would, apparently, weigh heavily on his mind at the end of his life: debt financing. Coffee Day’s total liabilities blossomed from $189 million in 2011 to $758 million last year.

Earlier in 2019, Siddhartha began searching for a way to answer demands from his growing mountain of creditors. He tried, futilely, to talk Coca-Cola into buying a stake in Coffee Day and explored other asset sales, desperate to widen his cash stream. In a more mature economy, he might have secured different sorts of funding from the beginning—presumably the private equity investors he attracted in 2010 pushed him to load up on debt—or had the opportunity to borrow at less onerous rates. We’ll never know what would have happened had that been the case. But on July 29, Siddhartha switched his phone off, instructed his driver to take him to the Ullal Bridge over the Netravati River, got out of the car and was never seen alive again.

Purportedly, Siddhartha left behind a note, outlining the grief that drove him to his tragic end. He highlighted harassment from a tax official, prompting outcries from Indian politicians that the government has not done enough to boost entrepreneurs like Siddhartha and tamp down on corruption. Siddhartha also mentioned needing to borrow a large sum from a friend to stay afloat and, of course, mounting pressure from lenders. “My intention was never to cheat or mislead anyone, I have failed as an entrepreneur,” the letter reads. “This is my sincere submission, I hope someday you will understand, forgive and pardon me.”

https://www.forbes.com/sites/abrambrown/2019/07/31/vg-siddhartha-death-coffee-day/#3ecb79464f7b
 

Mangele

Village Elder
#4
Your title is very misleading. Siddhartha was killed by indebtedness. Rapid, debt-fuelled expansion is never wise. Just one hitch can bring it all down.
Siddhartha left behind a note, outlining the grief that drove him to his tragic end. He highlighted harassment from a tax official, prompting outcries from Indian politicians that the government has not done enough to boost entrepreneurs like Siddhartha and tamp down on corruption.

A senior police official told PTI, "Investigation is going on. ..

"He had more assets than liabilities," Yediyurappa added.

Read more at:
http://timesofindia.indiatimes.com/...ofinterest&utm_medium=text&utm_campaign=cppst
 

1776

Village Sponsor
#5
He came to realise that the poor are sometime entitled and whatever you help them with, they will demand more of it regardless.
And that tax official ashikwe basi awekwe ndani ya jela miaka 7 (pun intended)
 

Nattydread

Village Chief
#6
Siddhartha left behind a note, outlining the grief that drove him to his tragic end. He highlighted harassment from a tax official, prompting outcries from Indian politicians that the government has not done enough to boost entrepreneurs like Siddhartha and tamp down on corruption.

A senior police official told PTI, "Investigation is going on. ..

"He had more assets than liabilities," Yediyurappa added.

Read more at:
http://timesofindia.indiatimes.com/...ofinterest&utm_medium=text&utm_campaign=cppst

"But to keep expanding, Siddhartha grew addicted to something that would, apparently, weigh heavily on his mind at the end of his life: debt financing. Coffee Day’s total liabilities blossomed from $189 million in 2011 to $758 million last year. "

Make up your mind.
 

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