What Are Buyable Startups?

buyable startups

There is virtually nothing new under the sun. In our highly competitive environment where startups are emerging by the minute, your fantastic business idea might also already exist in the market. But this doesn’t mean that your products or ideas aren’t unique.  

When picturing a startup, most imagine something like Google or Twitter. However, not every startup is sure to dominate the field. There are multiple pre-existing categories of startups that your idea might fall into, and it’s important to understand what category fits your business the best.

Definition of a Startup:

In layperson’s terms, a startup is a firm with fewer than 100 employees. This, however, is too simplistic a definition. A more detailed one would be, “a startup is establishing a temporary organization while searching for a scalable and repeatable business model.” 

The facets that could make a startup tick include a disruptive idea, a compelling investor pitch, perseverance, bucketloads of funding, and luck.

The main classification of startups would be:
  • Small business startups
  • Scalable startups
  • Large company startups
  • Buyable startups
  • Lifestyle startups
  • Social startups

What is a Buyable Startup?

A buyable startup is all about establishing startups with the end aim of selling them for a profit. These are companies formed with the sole intention of being sold to a larger company in the same niche. The expertise of a buyable startup lies in developing web-based and mobile apps, and they are set up with the bare minimum in capital investment to be taken over by internet conglomerates. Buyable startups work on a temporary model basis and are usually sold off when their value peaks. 

you can also check this out Five most innovative start-up ideas in 2022

Buyable Startups in India:

Bigger firms are always on the lookout for a buyable startup that can complement their existing operations. These startups are routinely established and sold once they turn profitable.  

A great example of a buyable startup in the Indian market is Simsim. It is a video product review app purchased by Google in 2021. 

Other notable acquisitions of buyable startups in India are:

  • Walmart acquired Flipkart
  • Ola acquired TaxiForSure
  • Ibibo Group takes over redBus
Conclusion:

Building a startup lucrative enough to be taken over by a bigger firm sounds like a sweet deal. But, do remember that not every startup can be ripe for the picking. Having a valuable startup that can be considered for a takeover that is worth millions is easier said than done. 

Taking over a startup has risks for the potential buyer and the person who creates the startup, as the tech world is fickle. At times, the current owner may be stuck trying to pawn off a company that is bleeding money.   

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