Today’s long story in Mint on how Wakefit is giving legacy mattress firms a back pain makes for an interesting read.
Started in 2016, Wakefit grew 12 times in the last 5 years ending with nearly 1000 Cr in 2023-24.
More importantly Wakefit and other D2C brands have truly disrupted the industry and forced down the industry’s average selling price.
Something that Chaitanya Ramalingegowda said in the interview stood out for me.
When they were starting up, the founders of Wakefit, approached two legacy players for investment but they didn’t even give them a meeting.
This is not the first time we have heard about a scenario like this- a hungry upstart reaches out to a large legacy player in the category for funding or mentoring but the incumbent refuses to even meet them.
I wonder why that happens 🤔
Especially when the founders reaching out come with valid credentials.
My guess is – it’s sheer arrogance- a misplaced over confidence that we already know how to win and there’s nothing a newbie can teach us.
I have seen this play out so often, that I have a term for this- “Incumbent Arrogance”.
If you are a large, successful business- then please don’t fall into this trap.
When a young team reaches out to you to share their idea, give them a patient hearing.
Not because of kindness. More because of your own self-interest.
Who knows- you might chance upon an idea that can potentially disrupt your industry 😅