Industrialist Anand Mahindra has issued a note of advice to India’s entrepreneurs in the wake of the shocking suicide of the Cafe Coffee Day founder, VG Siddhartha. There were reports that days before Siddhartha committed suicide, he had written to staff and board of directors of Cafe Coffee Day admitting to failures in the business.
Taking to Twitter, Mahindra wrote, “I did not know him & have no knowledge of his financial circumstances. I only know that entrepreneurs must not allow business failure to destroy their self-esteem. That will bring about the death of entrepreneurship.”
I did not know him & have no knowledge of his financial circumstances. I only know that entrepreneurs must not allow business failure to destroy their self-esteem. That will bring about the death of entrepreneurship. https://t.co/H4ysr8Ov3U
— anand mahindra (@anandmahindra) July 30, 2019
Many agreed with Mahindra’s advice as one user shared his personal experience, “Totally agre 2 tht sir! My fathr n brothr hav been going through d worst phase of biz frm 2 yrs, being negative in crores wit more liabilties thn assets bt til date both r making al efforts to sort the issues fight the stress and bring a feasible solution. Slow bt steady recovery.”
Mahindra replied, “Please tell them that as far as I am concerned they are already winners. Simply because they had the courage to take on an entrepreneurial risk…”
Please tell them that as far as I am concerned they are already winners. Simply because they had the courage to take on an entrepreneurial risk… https://t.co/wInTnEKaEY
— anand mahindra (@anandmahindra) July 31, 2019
News agency ANI had shared a letter written by Siddhartha, who wrote to his directors and staff about the company’s poor financial health. In the letter, Siddhartha also accused the Income Tax authorities of harassing him. He wrote, “I have failed to create the right profitable business model despite my best efforts. I would like to say I gave it my all. I am very sorry to let down all the people that put their trust in me. I fought for a long time but today I gave up as I could not take any more pressure…”
He continued, “…I could not take any more pressure from one of the private equity partners forcing me to buy back shares, a transaction I had partially completed six months ago by borrowing a large sum of money from a friend. Tremendous pressure from other lenders lead to me succumbing to the situation. There was a lot of harassment from the previous DG income tax in the form of attaching our shares on two separate occasions to block our Mindtree deal and then taking position of our Coffee Day shares… This was very unfair and has led to a serious liquidity crunch.”
60-year-old Siddhartha’s body was found floating in a river near Mangalore by a fisherman on Wednesday.