Z47
October 29, 2021

When to bring in an external CEO

Rajinder:

When do I need to bring in anexternalCEO?

Avnish:

I think if you have that question in your mind, as a founder and genuinely you have it and not your investors is planting it, then you probably know the answer, and which is that you need it. But I would say, you know in multiple videocasts Rajinder, we have gone through these different phases of a company's journey, 0 to 1, 1 to 10, 10 to infinity. We have also spoken in another videocast about Wartime – Peacetime.

So the reality is, these are not all the same things. There are hustlers, there are thinkers, as a founder forget whether you can do it. We have spoken earlier about passion opportunity skillset in other places, right? You may not have the skillset for it, but you may not even have the passion for it. Do you want to manage a company of so many people, right?

So I think the best thing that I have seen, it probably what played out with Google, right, or maybe even Microsoft.

Where, well they are different but the founders realized they needed somebody at a different stage, may be more of a peacetime, since they were winning, andEric Shmidtcame in and then these guys almost got coached under him and came back. I think that’s probably the best example, probably the most self-aware founders in that situation.

But there have been other transitions, Microsoft and so on and so forth. I think you have to be self-aware, are you able to transition between these different roles, do you have the passion and do you have the skillsets. If you have the skillset but don’t have the passion, still don’t do it. If you have the passion but don’t have the skillset, please don’t do it.

Only if you have both the passion and the skillset, should you do it. And otherwise, ultimately, you’re going to be the owner, owners and managers, in India owners tend to be managers, in the US, you’ve seen so many owners are not managers.

If you are truly going to create value as an owner, then please get a manager who is better than you, if you feel you can't handle it, lot of it has to be self-awareness but I think the board, the investors can play an important role, if you are open to it. In telling you whether it’s the right thing to do it or not the right thing to do. But I think the net-net will be, are you able to transition these different roles.

For more information, write to us: namaste@Z47.com.
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October 29, 2021

When to bring in an external CEO

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Rajinder:

When do I need to bring in anexternalCEO?

Avnish:

I think if you have that question in your mind, as a founder and genuinely you have it and not your investors is planting it, then you probably know the answer, and which is that you need it. But I would say, you know in multiple videocasts Rajinder, we have gone through these different phases of a company's journey, 0 to 1, 1 to 10, 10 to infinity. We have also spoken in another videocast about Wartime – Peacetime.

So the reality is, these are not all the same things. There are hustlers, there are thinkers, as a founder forget whether you can do it. We have spoken earlier about passion opportunity skillset in other places, right? You may not have the skillset for it, but you may not even have the passion for it. Do you want to manage a company of so many people, right?

So I think the best thing that I have seen, it probably what played out with Google, right, or maybe even Microsoft.

Where, well they are different but the founders realized they needed somebody at a different stage, may be more of a peacetime, since they were winning, andEric Shmidtcame in and then these guys almost got coached under him and came back. I think that’s probably the best example, probably the most self-aware founders in that situation.

But there have been other transitions, Microsoft and so on and so forth. I think you have to be self-aware, are you able to transition between these different roles, do you have the passion and do you have the skillsets. If you have the skillset but don’t have the passion, still don’t do it. If you have the passion but don’t have the skillset, please don’t do it.

Only if you have both the passion and the skillset, should you do it. And otherwise, ultimately, you’re going to be the owner, owners and managers, in India owners tend to be managers, in the US, you’ve seen so many owners are not managers.

If you are truly going to create value as an owner, then please get a manager who is better than you, if you feel you can't handle it, lot of it has to be self-awareness but I think the board, the investors can play an important role, if you are open to it. In telling you whether it’s the right thing to do it or not the right thing to do. But I think the net-net will be, are you able to transition these different roles.

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

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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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