Z47
September 22, 2021

Co-founder Conflicts

Co-founder conflicts: one of the trickiest situations that a founding team goes through. How should founders engage with one another amidst a conflict & maneuver such a situation? Tune in to find out.

Rajinder:

What if I’m not getting along with my co-founder, what should I do?

Avnish:

I think it’s a problem and it is probably one of the trickiest situations a founding team goes through.

And the answer I have is not politically correct​ and it’s not going to be popular, but I think if you are in that situation, you are done. Sadly, I’ve seen multiple instances where – the process of coming together has been – we didn't clearly discuss it, but one needs to spend so much time on it think about scenarios, interact in different settings, potentially hang out as families. You are so intertwined that to disengage is probably as pain full as it would be if not some phase, it could be even more given it's tied to a work success than it would be in a marriage situation right.

So, I understand that but that doesn’t mean that the answer is not clearer and fortunately you can say that the company is your baby but it’s not, you know there is a human, blood, connection on the other side, so I think you have to be more objective.

So, my view is you give it your best shot but both sides – and I’ve seen actually 80% of the situation where it’s been handled beautifully by both sides.

So, my view is the what versus the how are very different things. If the what is clear, which in my view if you are thinking about it it’s probably clear it’s not working. Versus the how you are going to disengage, how you are going to move forward, I think those are very different things. And in my view when the what is clear do the how with as much grace, as much humility but with as much objectivity as you can. And be over-generous when it comes to economics, I think that’s where people screw up.

Do whatever it takes on the economics because there are relationships you want to keep for life, and there is a karmic angle to it where you want to keep that positive energy around you. your people are watching you, how this is going to happen, and they want to take lessons from that.

For more information, write to us: namaste@Z47.com.
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Co-founder Conflicts

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Co-founder conflicts: one of the trickiest situations that a founding team goes through. How should founders engage with one another amidst a conflict & maneuver such a situation? Tune in to find out.

Rajinder:

What if I’m not getting along with my co-founder, what should I do?

Avnish:

I think it’s a problem and it is probably one of the trickiest situations a founding team goes through.

And the answer I have is not politically correct​ and it’s not going to be popular, but I think if you are in that situation, you are done. Sadly, I’ve seen multiple instances where – the process of coming together has been – we didn't clearly discuss it, but one needs to spend so much time on it think about scenarios, interact in different settings, potentially hang out as families. You are so intertwined that to disengage is probably as pain full as it would be if not some phase, it could be even more given it's tied to a work success than it would be in a marriage situation right.

So, I understand that but that doesn’t mean that the answer is not clearer and fortunately you can say that the company is your baby but it’s not, you know there is a human, blood, connection on the other side, so I think you have to be more objective.

So, my view is you give it your best shot but both sides – and I’ve seen actually 80% of the situation where it’s been handled beautifully by both sides.

So, my view is the what versus the how are very different things. If the what is clear, which in my view if you are thinking about it it’s probably clear it’s not working. Versus the how you are going to disengage, how you are going to move forward, I think those are very different things. And in my view when the what is clear do the how with as much grace, as much humility but with as much objectivity as you can. And be over-generous when it comes to economics, I think that’s where people screw up.

Do whatever it takes on the economics because there are relationships you want to keep for life, and there is a karmic angle to it where you want to keep that positive energy around you. your people are watching you, how this is going to happen, and they want to take lessons from that.

We are excited about the innovation and growth opportunities in this sector.

If you are considering building in the footwear space, we’d love to chat.
Drop us a line at consumer@matrixpartners.in

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Index Performance

+28.1%
Since Jan 2024
NIFTY 500
+19.0%
Since Jan 2024

Z47^fortyseven is up +23.9% since its January 2024 base date, versus Nifty 500's +18.4%, ahead by 550 bps.

The cohort moved +4.7% over the month versus Nifty 500's +2.5%, leading by 220 bps.

Anchored in domestic demand and rising digital adoption, the cohort remained resilient amid global headwinds.

Consumer Tech was the best-performing sector at +9.2% last month, driven by sustained growth in consumer demand and strength in consumer-internet platforms.

Largest Constituents  ·  The Names That Anchor The Index

1.
Eternal
Quick-commerce leadership and continued investment
▲ +12.8%
2.
Groww
Broking market-share gains and margin-funding growth.
▲ +10.4%
3.
Lenskart
Store densification and margin expansion.
▲ +2.4%

Top Gainers  ·  Key Drivers

1 MONTH RETURN
1.
CarTrade
Auto-marketplace dominance and a cash-rich balance sheet.
▲ +59.4%
2.
 Amagi Media Labs
Profitability turnaround and AI-led cloud media adoption.
▲ +31.4%

Top Laggards  ·  Key Drivers

1 MONTH RETURN
1.
Fractal Analytics
Enterprise AI spending trends and post-listing share supply.
▼ -10.8%
2.
MedPlus Health
Pharmacy-margin pressure and competitive intensity.
▼ -6.6%

Key Themes  ·  Latest Results

In Q4FY26, Z47^fortyseven's cohort grew top line ~39% YoY, more than 3x the broad market's ~12% growth.

Operating leverage lifted net margins around 500 bps into positive territory, even as broad-market net margins remained roughly flat.

With 40 of 47 companies now profitable, the cohort reflects a broader shift toward profitable growth over growth at any cost.

AI adoption runs deeper across this cohort than in the broader market, with companies using it to drive growth and reshape demand, not just improve efficiency.

Cash generation is increasingly defining the winners, enabling market leaders like Eternal, CarTrade, and PB Fintech to fund acquisitions and expansion from their own balance sheets.

Market & Macro Context

The cohort saw several block deals this month, including sizeable stake sales in Lenskart, Delhivery, Honasa, and Shadowfax.

Ownership continues to shift from foreign investors to domestic institutions, creating a more durable shareholder base.

AI remained the defining technology investment theme, driving capital deployment across both private and public markets.

IPO Takeaway · Kissht

Listed May 2026

A modest listing pop followed by strong post-listing gains reinforced the market's preference for asset quality and disciplined underwriting over pure loan-book growth.

The listing helped reset perceptions around unsecured lending, creating a constructive valuation anchor for the issuers that follow.

The buyer mix was a notable positive — strong participation from long-only domestic institutions supporting a durable post-listing ownership base.

Net Read

Fundamentals continued to strengthen across the cohort, with growth, margins, and cash generation improving in tandem.

Performance dispersion widened, with profitability and earnings quality increasingly distinguishing the strongest performers from the rest.

Disclaimer

Z47^fortyseven is published for informational purposes only and does not constitute investment advice, or any offer, solicitation, or recommendation to buy or sell securities. Index performance is historical and should not be construed as indicative of future results.

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