-1 to Extreme Conviction in India's EV Market | Tarun Mehta & Ather Energy

Early Life Philosophy and Approach

Tarun Mehta's journey to founding Ather Energy was shaped by an unconventional philosophy that he describes as being "extremely lazy" and optimizing for the "least effort path." This approach fundamentally influenced his life decisions and later business strategy.

Key Formative Decisions:

1. Educational Choices - Selected schools and coaching centers based purely on proximity and minimal time commitment
2. Efficiency Focus - Found a JEE coaching center that offered rare 1.5-hour sessions every alternate day
3. Low-Pressure Environment - Attended a school with only 4 hours daily and no homework requirements

Core Philosophy Development:

• Anti-Competition Mindset: Developed a strong aversion to traditional competition
• Differentiation Strategy: Preferred doing things others weren't doing to avoid crowded spaces
• Effort Optimization: Consistently chose paths requiring less conventional effort

This lazy approach paradoxically led to highly differentiated thinking that would later benefit Ather Energy's positioning in the market.

Timestamp: [2:02-3:54]

The Life-Changing Stanford Experience

A one-week conference at Stanford in 2009 completely revolutionized Tarun's understanding of entrepreneurship and set the foundation for Ather Energy's creation.

Before Stanford:

• Traditional Mindset: Joined entrepreneurship club hoping to get consulting jobs
• Corporate Focus: Aimed for prestigious positions like HBS 2+2 program
• Limited Vision: Viewed entrepreneurship as a path to employment rather than value creation

The Stanford Revelation:

• Mind-Blowing Realization: Discovered that students could create value independently
• Cultural Shift: Witnessed an environment where "everybody was starting up"
• Paradigm Change: Understood that you could build companies without large corporate backing

Immediate Impact:

1. Perspective Transformation - Changed entire view of what entrepreneurship could be
2. Action Catalyst - Motivated actual startup thinking rather than job hunting
3. Co-founder Discovery - Found a hardworking partner to complement his approach

This experience was crucial because in 2009, Bangalore didn't yet have the startup ecosystem that exists today, making Stanford's entrepreneurial culture particularly impactful.

Timestamp: [5:02-5:51]

The Stirling Engine Journey

Before becoming an electric vehicle company, Ather Energy spent three years in college developing clean combustion technology, specifically focusing on Stirling engines for higher efficiency power generation.

Technical Foundation:

• Stirling Cycle Engines: Based on thermodynamics principles for maximum efficiency
• Carnot Cycle Connection: Stirling cycle is the only technology that can achieve Carnot cycle efficiencies
• Clean Combustion Focus: Aimed at creating higher efficiency internal combustion alternatives

College Development Phase:

1. Three-Year Commitment - Dedicated entire college period to engine development
2. Deep Technical Work - Built actual prototypes and working systems
3. Energy Sector Passion - Developed genuine excitement about energy impact potential

Sector Impact Realization:

• Scale Recognition: Understanding that energy sector breakthroughs have "ginormous" impact potential
• Academic Validation: Could argue the massive scale of potential impact
• Mission Alignment: Became passionate about creating large-scale positive change

Evolution to Ather:

The transition happened organically: Stirling engines → battery packs → vehicles → startup pitch → funding → Ather Energy formation.

This technical foundation in energy systems provided crucial expertise that later informed their electric vehicle development approach.

Timestamp: [5:58-7:34]

The Organic Evolution Process

Ather Energy's transformation from a battery pack company to a vehicle manufacturer happened through an unplanned, organic progression that demonstrates how startups can evolve beyond their original scope.

The Original Battery Pack Plan:

• Initial Purpose: Assemble battery packs solely to demonstrate a charging solution
• Core Focus: Developing swappable battery pack technology
• Limited Scope: Battery packs were meant to be a supporting component, not the main product

The Snowball Effect:

1. Battery Packs → Became more sophisticated and capable
2. Vehicle Integration → Battery packs naturally led to vehicle development
3. Pitch Evolution → Vehicles became the compelling story for investors
4. Startup Formation → The pitch attracted funding and formalized the company

Key Transition Factors:

• Technical Progression: Each development stage naturally led to the next
• Market Opportunity: Vehicles presented larger impact potential than just battery packs
• Investor Interest: The complete vehicle solution was more fundable than components alone

Strategic Pivot Timing:

After leaving their jobs at Ashok Leyland and returning to college labs, the team gave themselves two years to develop the concept, which allowed for this organic evolution to occur.

This accidental progression illustrates how successful startups often discover their true calling through iterative development rather than rigid initial planning.

Timestamp: [7:20-7:57]

Essential Insights:

1. Unconventional Philosophy - Tarun's "lazy" approach and anti-competition mindset led to differentiated thinking that benefited Ather's market positioning
2. Transformative Exposure - A Stanford conference in 2009 completely changed his perspective on entrepreneurship from job-seeking to value creation
3. Organic Evolution - Ather Energy accidentally evolved from Stirling engines to battery packs to electric vehicles through natural progression rather than rigid planning

Actionable Insights:

• Embrace Differentiation: Avoiding crowded competitive spaces can lead to unique market positioning and reduced competition
• Seek Transformative Experiences: Exposure to different entrepreneurial environments can fundamentally shift perspective and ambitions
• Allow Organic Development: Startups often discover their true calling through iterative development rather than sticking rigidly to initial plans
• Leverage Technical Foundation: Deep technical expertise in adjacent areas (Stirling engines) can provide valuable foundation for pivot opportunities
• Value Impact Scale: Focusing on sectors with potential for massive impact (energy) can provide long-term motivation and market opportunity

Timestamp: [0:58-7:57]

People Mentioned:

• Tarun Mehta - Co-founder and CEO of Ather Energy, main subject of the interview discussing his entrepreneurial journey

Companies & Products:

• Ather Energy - Electric vehicle company co-founded by Tarun, evolved from Stirling engine and battery pack development
• Ashok Leyland - Indian commercial vehicle manufacturer where Tarun worked before starting Ather Energy
• Stanford University - Location of transformative entrepreneurship conference that changed Tarun's perspective in 2009
• Harvard Business School - Referenced regarding the 2+2 MBA program that Tarun initially pursued

Technologies & Tools:

• Stirling Engines - Clean combustion engines based on the Stirling cycle that Ather's founders developed for 3 years in college
• Carnot Cycle - Theoretical thermodynamic cycle representing maximum possible efficiency that Stirling engines can approach
• Battery Packs - Energy storage systems that became Ather's initial focus before evolving into complete vehicles
• Swappable Battery Technology - Original concept for interchangeable battery systems that led to vehicle development

Concepts & Frameworks:

• Minus One Philosophy - Referenced approach of taking risks and committing to long-term vision before having complete certainty
• Anti-Competition Strategy - Tarun's approach of avoiding crowded markets and doing things others aren't doing
• Organic Business Evolution - How Ather naturally progressed from engines to batteries to vehicles to funded startup

Timestamp: [0:58-7:57]

The "Minus One" Philosophy in Action

After leaving their jobs in February 2013, Tarun Mehta and his co-founder spent 9 months in their lab deliberately avoiding commitment to any startup idea. This wasn't procrastination—it was strategic patience.

Their Daily Routine:

• Sitting in shorts every day - Completely informal, pressure-free environment
• Theorizing and philosophizing - Deep discussions about life and business
• Debating fundamental questions - Should they hire only engineers? Build a brand or stay backend?
• Refusing to commit - "Until we really like something, we'll not do it"

Key Principles They Followed:

1. No artificial deadlines - Rejected the "today's the date we've got to decide" mentality
2. High conviction requirement - Only commit when you have extreme conviction for at least a decade
3. Core purpose stability - Technologies and approaches can change, but the fundamental reason shouldn't

The Payoff:

• Zero pivots in 12 years - Ather has never practically pivoted since inception
• Unwavering team commitment - Early team members stayed true to the mission
• Mental peace - The clarity gave founders incredible peace of mind

Timestamp: [8:15-10:54]

Building an Unshakeable Early Team

Ather Energy achieved something remarkable in the startup world: virtually no employee turnover for their first 400 hires over 3-4 years.

The Numbers:

• First 250-350 hires - Straight line path with very little deviation
• Zero crisis moments - No lack of faith or back-and-forth among team members
• Only 3 departures - One admin person, one for masters, one for ethics issues
• No voluntary attrition - Nobody left saying "I have better things to do"

What Made This Possible:

1. Crystal clear vision - The 9-month thinking period created unshakeable clarity
2. High conviction leadership - Founders' certainty translated to team confidence
3. Aligned mission - Everyone believed deeply in what they were building
4. No confusion or deviation - Clear direction meant no internal conflicts

The Foundation:

The extensive pre-commitment phase meant that when they finally started, there was:

• Very little confusion about direction
• Very little moments of crisis in decision-making
• Complete alignment on the company's purpose and approach

Timestamp: [11:52-12:41]

The Manufacturing Reality Check of 2019

After launching their scooter in Bangalore (2018) and Chennai (2019) to great reception, Ather faced their first existential crisis when the harsh realities of automotive manufacturing hit.

The Crisis Unfolds:

• 9 months to figure out production costs - Couldn't tell the board their margins for successive meetings
• Bill of materials unknown - Still discovering flaws every time they assembled a scooter
• 3x cost overrun - Final cost structure was three times higher than originally projected
• Selling price destroyed - The economics were completely shot

The Panic Response:

Consulting Company Intervention:

• Investor insisted on bringing in external help
• 6 consulting firms approached: McKinsey, BCG, and others
• Minimum offer: ₹2 crores per month, ₹20 crores minimum commitment
• Best promise: 30% cost reduction over two years

The Math Problem:

• Current bill of materials: ₹3.6 lakhs per scooter
• Needed reduction: 70% to make economics work
• Consulting offer: Only 30% reduction possible
• Reality: "30% will not fix this scooter"

Crisis of Faith:

This was the first time in 5 years that the team, including Tarun, started questioning whether the entire venture was a mistake, despite having a good product.

Timestamp: [12:55-15:00]

The Dual-Track Recovery Strategy

Facing a crisis where their scooter's bill of materials was ₹3.6 lakhs and consulting firms could only promise 30% cost reduction (when they needed 70%), Tarun Mehta launched two parallel initiatives.

Project Pure - The New Scooter Approach:

• Core hypothesis: Maybe the fancy performance scooter was the problem
• New direction: Build a normal scooter with better economics
• Team response: Dedicated team members believed in the founders and ran with it
• Timeline: 6-8 months of development
• Visual reminder: Posters still on the wall labeled "Project Pure"
• Promise: Finally achieve a "pure business model" instead of the "unclean one"

The Backup Plan:

Tarun simultaneously started a second initiative, knowing Project Pure would likely fail, as a safety net for the company's survival.

Team Dynamics:

The crisis revealed the strength of Ather's culture - even in panic mode, teams remained dedicated and believed in the founders' judgment, immediately pivoting to execute new directions when asked.

Timestamp: [15:18-15:56]

Essential Insights:

1. The "Minus One" Philosophy - Spending 9 months without committing to any idea led to zero pivots in 12 years and extreme conviction
2. Team Building Success - Clear vision and high conviction leadership resulted in zero voluntary attrition for the first 400 employees
3. Manufacturing Reality - Even with a great product, Ather's first major crisis came when production costs were 3x higher than projected

Actionable Insights:

• Don't rush commitment - Take time to develop extreme conviction before starting, even if it means months of deliberation
• Hire for mission alignment - When founders have crystal clear vision, it translates to unwavering team commitment
• Prepare for manufacturing challenges - Building a cool concept is different from building an automotive-scale manufacturing business
• Have backup plans - When facing existential crises, launch multiple parallel initiatives to increase survival odds

Timestamp: [8:03-15:56]

People Mentioned:

• Tarun Mehta - Co-founder and CEO of Ather Energy, sharing his startup journey and philosophy

Companies & Products:

• Sun Mobility - Battery swapping company mentioned as comparison for early business model consideration
• Gogoro - Electric scooter company with battery swapping network, used as reference point
• Ather Energy - Electric scooter company founded by Tarun Mehta, focus of the discussion
• McKinsey & Company - Management consulting firm approached during the 2019 crisis
• Boston Consulting Group (BCG) - Another consulting firm that provided cost reduction proposals

Concepts & Frameworks:

• Minus One Philosophy - SPC's term for the pre-commitment phase where founders take time to develop extreme conviction
• Project Pure - Ather's internal project to develop a simpler, more economical scooter during their 2019 crisis
• Bill of Materials (BOM) - Manufacturing cost breakdown that Ather struggled to calculate accurately
• Automotive Scale Manufacturing - The challenge of transitioning from concept to mass production in the vehicle industry

Timestamp: [8:03-15:56]

Strategic Business Model Transformation

The Platform Strategy:

1. Complete Vehicle Exit - Planned to exit the vehicle manufacturing business entirely
2. Android Model Adoption - Transform into a platform company like Android's ecosystem
3. Open Source Approach - Open source entire vehicle technology stack
4. Software Licensing - Generate revenue through software licenses instead of hardware sales

The Generous Offer:

• Free Vehicle Design - Offered the popular 450 model design at no cost
• Supply Chain Access - Provided existing supply chain partnerships
• Minimal Fee Structure - Only requested $10-20 million one-time fee
• Battery Pack Manufacturing - Offered to build battery packs at fixed gross margins

Market Reality Check:

• Zero adoption from two-wheeler companies
• Complete rejection of the platform model
• Deeper crisis as both hardware and software strategies failed
• Forced reassessment of entire business approach

Timestamp: [16:02-16:56]

COVID-19 as a Strategic Catalyst

Pre-COVID Challenges:

1. Wrong Pricing Strategy - Selling vehicles at ₹1.2 lakhs instead of optimal ₹1.6-1.7 lakhs
2. Strategic Distractions - Pursuing platform and new vehicle initiatives
3. Resource Dilution - Spreading focus across multiple unproven concepts

COVID-Forced Reset:

• Price Correction - Adjusted pricing from ₹1.2 lakhs to ₹1.6-1.7 lakhs range
• Focus Consolidation - Eliminated platform and new vehicle distractions
• Team Restructuring - Let go of employees not aligned with core mission
• Core Product Focus - Concentrated entirely on fixing existing product

Breakthrough Results:

• Positive Unit Economics - Achieved positive gross margins after one year
• Strategic Clarity - Emerged with clear direction and sustainable model
• Survival Through Crisis - COVID closure of acquisition path forced innovation

Timestamp: [17:01-18:03]

Ather Energy's Radical Honesty Culture

Transparency Philosophy:

• Authentic Storytelling - Only share stories they truly believe in
• Honest Acknowledgment - Openly admit uncertainties and challenges
• No False Narratives - Refuse to create misleading success stories

Crisis Communication Strategy:

1. Direct Problem Sharing - Explicitly communicate financial constraints
2. Collaborative Solutions - Involve entire team in problem-solving
3. Future Commitment - Make specific promises about making up losses
4. Equity Participation - Offer ownership stakes for salary sacrifices

Cultural Impact:

• Trust Building - Successive honest communications build credibility
• Long-term Thinking - Employees invest in company's future success
• Crisis Resilience - Team stays committed through multiple down rounds
• Reputation Formation - Company known for playing fair with employees

Timestamp: [19:12-22:43]

Unprecedented Valuation Corrections

The Down Round Sequence:

1. First Down Round - 40% valuation cut
2. Second Down Round - 50% cut on already reduced valuation (within 6 months)
3. Third Down Round - 65% additional cut 18 months later

Employee Impact Management:

• Variable Pay Suspension - Couldn't afford to pay earned bonuses
• Voluntary Contribution Request - Asked employees to donate what they could
• Legal Transparency - Explained legal right to withhold but chose honesty
• Future Commitment - Promised to make up losses when cash available

Compensation Recovery:

• Variable Pay Restoration - Paid withheld bonuses one year later
• Bonus Addition - Added 50% bonus on top of withheld amounts
• Equity Compensation - Gave double equity value for salary cuts taken
• Massive Returns - ₹10 lakh pay cut became ₹80 lakh equity value

Team Response:

• Zero Attrition - Minimal employee departures during crisis
• Trust Building - Each incident strengthened company reputation
• Long-term Commitment - Employees believed in eventual success

Timestamp: [19:36-22:34]

Personal Leadership During Startup Struggles

Mental Framework for Crisis:

• Avoid False Bravado - Don't pretend everything is fine when it isn't
• Embrace Vulnerability - Accept that the company's struggles reflect on you
• Separate Identity from Outcomes - Understand that business failure doesn't define personal worth

Communication Strategy:

1. Radical Transparency - Be completely honest with your team about challenges
2. Clear Timeline Communication - Tell people exactly how much runway remains
3. Belief Articulation - Explain why you still believe the mission will succeed
4. Honest Uncertainty - Acknowledge what you don't know or can't guarantee

Leadership Principles:

• Team-First Approach - Prioritize team welfare over personal ego
• Long-term Perspective - Focus on building sustainable relationships
• Authentic Communication - Share genuine thoughts rather than manufactured optimism
• Accountability Acceptance - Take responsibility for decisions and outcomes

Timestamp: [23:09-23:58]

Essential Insights:

1. Platform Strategy Failure - Ather's attempt to become an Android-like platform for two-wheelers failed completely, with zero industry adoption despite generous terms
2. COVID-Forced Reset - The pandemic forced necessary strategic corrections: proper pricing (₹1.6-1.7 lakhs vs ₹1.2 lakhs), focus consolidation, and elimination of distractions
3. Transparency Builds Resilience - Radical honesty about financial struggles, combined with fair treatment of employees, created unprecedented loyalty through three major down rounds

Actionable Insights:

• Price products correctly from the start - Wrong pricing can kill even good products; COVID forced Ather to correct their pricing strategy
• Focus beats diversification in crisis - Eliminating platform and new vehicle distractions allowed focus on core product improvement
• Honest communication during crisis builds trust - Transparent discussions about financial constraints, combined with fair compensation recovery, created lasting employee loyalty
• Survive down rounds through team alignment - Three successive valuation cuts (40%, 50%, 65%) were survived because employees believed in long-term vision and fair treatment

Timestamp: [16:02-23:58]

People Mentioned:

• Tarun Mehta - Co-founder and CEO of Ather Energy, sharing experiences of business model pivots and crisis management
• Swapnil Jain - Co-founder of Ather Energy, mentioned as partner in transparent employee communications during financial crisis

Companies & Products:

• Ather Energy - Electric vehicle company that survived multiple down rounds through transparent leadership and strategic pivots
• Ather 450 - Popular electric scooter model that was offered free to other manufacturers as part of platform strategy
• Android - Referenced as business model inspiration for platform strategy approach

Business Concepts & Frameworks:

• Platform Business Model - Strategy to become software-focused company like Android rather than hardware manufacturer
• Down Rounds - Multiple successive valuation cuts (40%, 50%, 65%) that most companies don't survive
• Variable Pay Management - Crisis compensation strategy involving temporary suspension and later restoration with bonuses
• Equity Compensation - Using stock options to compensate for salary cuts during financial constraints

Timestamp: [16:02-23:58]

Employee Communication & ESOP Management

Ather Energy's approach to managing team morale during challenging periods centers on radical transparency and honest communication about equity compensation.

Communication Strategy:

1. Complete Transparency - Share all information openly to remove uncertainty from employees' minds
2. Honest ESOP Presentation - Present employee stock options as potential bonuses rather than guaranteed wealth
3. Realistic Expectations - Acknowledge that ESOPs might be worthless if the company fails

Key Benefits of This Approach:

• Reduced Leadership Burden: When everything is communicated, founders don't carry the weight of hidden information
• Team Preparedness: Employees understand the risks and aren't blindsided by potential outcomes
• Maintained Trust: Honest communication prevents feelings of betrayal during difficult periods

Talent Retention Confidence:

• Strong market reputation ensures employees can find new opportunities
• High-quality talent gets recruited easily by other companies
• Focus shifts from job security fears to realistic equity expectations

Timestamp: [24:05-24:48]

Founder Mindset & Resilience

The founding team's unwavering belief in their mission serves as a crucial psychological anchor during difficult times.

Core Optimism Factors:

• Fundamental Belief: Never truly believed the company wouldn't succeed
• Ridiculously Optimistic Outlook: Maintained positive perspective even during hardest moments
• Shared Conviction: Both founders aligned on long-term success probability

Support Systems:

1. Family Support - Provides emotional stability outside work environment
2. Transparent Communication - Reduces internal stress through open dialogue
3. Partnership Strength - Strong co-founder relationship provides mutual reinforcement

Transparency Limitations:

• Different Standards: Less transparency possible with family compared to team members
• Protective Instinct: Natural tendency to shield family from business stress
• Professional vs Personal: Clear boundaries between work and home communication

Timestamp: [24:48-25:14]

Co-Founder Selection & Relationship Building

The 18-year partnership between Ather Energy's founders demonstrates the value of deep, tested relationships in entrepreneurship.

College Advantage for Co-Founder Discovery:

1. Extended Testing Period - Five years together in same hostel and department
2. Value System Revelation - Academic integrity tests reveal character (cheating decisions, work ethics)
3. Natural Respect Development - Mutual respect builds through shared experiences and similar values
4. Work Soulmate Discovery - Find someone who pushes you without needing external pressure

Pre-Startup Foundation:

• Three Years of Attempts - Spent three college years trying to build the company together
• Known Value Systems - Already understood each other's core principles before starting
• Proven Commitment - Demonstrated dedication through unpaid lab work for one year

Critical Timing Advice:

• Don't Rush Co-Founder Selection - Take time to truly understand capabilities and value systems
• Long Journey Perspective - Entrepreneurship requires deep compatibility beyond just liking someone
• Purest Motivations - Starting with nothing to offer each other tests true commitment

Timestamp: [25:14-27:31]

Complementary Leadership Dynamics

The success of Ather Energy's co-founder relationship stems from embracing fundamental differences while maintaining shared long-term vision.

Polar Opposite Approach:

• Complete Contrary Views - Almost every topic generates completely different perspectives
• Healthy Debate Culture - Extreme amount of argumentation and discussion between founders
• Mutual Honesty - Opposing views keep both founders intellectually honest

Organizational Benefits:

1. Thorough Analysis - Every decision gets debated religiously from multiple angles
2. Reduced Blind Spots - Different approaches reveal potential issues and opportunities
3. Stronger Decisions - Final choices emerge from rigorous examination of alternatives

Long-Term Vision Alignment:

• 30-50 Year Perspective - All mission and vision statements focus on multi-decade impact
• Shared Purpose Binding - Common long-term goals unite despite tactical disagreements
• Temporary Pain Context - Five-year challenges seem manageable within longer timeline

Professional Development:

• Executive Coaching - Engaged professional coach at five-year mark
• Five Years of Support - Ongoing coaching relationship helps navigate partnership complexities
• Proactive Investment - Recognized need for external guidance before problems emerged

Timestamp: [27:31-29:06]

Leadership Transition & Organizational Control

Ather Energy's experience reveals critical lessons about founder involvement and the challenges of bringing in external leadership.

Early Stage Success (Up to 300-350 People):

• Direct Management - Company run directly without traditional hierarchy
• High Trust Environment - All employees understood their roles and company mission
• Collective Ownership - Everyone focused on building the vehicle together
• Natural Optimization - Self-organizing teams made right decisions for company

2019 Leadership Transition Mistakes:

1. Sudden Stepping Back - Founders decided to observe rather than guide new leaders
2. Seasoned Leadership Import - Brought in external leaders without proper integration
3. Value System Mismatch - New leaders didn't align with company culture and values

Painful Consequences by 2021:

• Mass Leadership Exodus - Most external leaders left the company
• Employee Toxicity - Team members developed negative feelings toward new leadership
• Cultural Breakdown - Unable to prevent toxic environment from spiraling
• Self-Aware Departures - External leaders recognized toxicity and left voluntarily

Timestamp: [29:06-31:10]

Organizational Development Philosophy

Ather Energy's hard-learned lesson emphasizes the critical importance of founder involvement across all business functions, not just core competencies.

Universal Application Principle:

• Beyond Core Functions - Not just engineering, product, and design, but every department
• Complete Organizational Coverage - Operations, marketing, sales, manufacturing, sourcing, finance, HR, IT

Failed Delegation Examples:

1. Operations - External leadership couldn't maintain founder-level standards
2. Marketing & Sales - Outside hires didn't understand company positioning and values
3. Manufacturing & Sourcing - Technical complexity required founder-level understanding
4. Support Functions - Even HR and IT needed founder involvement for cultural alignment

Value System Integration Challenge:

• Incompatible Approaches - External leaders' methods clash with founder vision
• Employee Resistance - Team members reject leadership that doesn't align with company culture
• Pitching Against Leadership - Employees complain about external hires to founders
• Standard Practice Failure - Traditional HR principles don't work without cultural foundation

Key Insight:

• Founder DNA Required - Every function needs founder-level understanding of company values
• Cultural Compatibility - External expertise means nothing without cultural alignment
• Painful but Necessary - Building everything yourself first is slow but essential for long-term success

Timestamp: [31:10-31:56]

Essential Insights:

1. Radical Transparency Works - Complete communication with employees about risks and equity reduces founder stress and builds trust
2. Co-Founder Selection is Critical - College relationships provide the best foundation for testing values and building long-term partnerships
3. Opposing Views Strengthen Decisions - Polar opposite perspectives between founders create thorough analysis and better outcomes

Actionable Insights:

• Present ESOPs honestly as potential bonuses rather than guaranteed wealth to manage expectations
• Invest in executive coaching around the five-year mark to navigate co-founder relationship complexities
• Build every organizational function yourself first before bringing in external leadership to ensure cultural alignment
• Take time to truly understand potential co-founders' value systems rather than rushing into partnerships
• Maintain 30-50 year vision statements to make short-term challenges feel temporary and manageable

Timestamp: [24:05-31:56]

People Mentioned:

• Swapnil Jain - Tarun Mehta's co-founder at Ather Energy, 18-year relationship dating back to 2007

Companies & Products:

• Ather Energy - Electric vehicle company co-founded by Tarun Mehta and Swapnil

Concepts & Frameworks:

• ESOP (Employee Stock Option Plan) - Equity compensation presented as potential bonuses rather than guaranteed returns
• Executive Coaching - Professional guidance for co-founder relationships, implemented at five-year company milestone
• Value System Alignment - Core principle for successful co-founder partnerships and organizational leadership
• 30-50 Year Vision Statements - Long-term perspective framework for maintaining motivation during short-term challenges

Timestamp: [24:05-31:56]

Founder-Led Foundation Building

Core Philosophy:

1. Founder Must Build First - If there's anything being built in the company, the founder should establish it initially
2. Set the Standard - Establish guiding principles and ways of working for 6-12 months
3. Hire in Your Mold - Recruit people who align with the established framework to reduce initial resistance
4. Strategic Step Back - Once foundation is set, step back and let the function evolve naturally
5. Minimal Intervention - Only course-correct once every 5-8 years after initial setup

Key Benefits:

• Lower Initial Resistance - Team members understand expectations from day one
• Cultural Consistency - Functions develop with founder's vision embedded
• Long-term Stability - Reduces need for constant micromanagement
• Natural Evolution - Allows organic growth while maintaining core principles

Critical Warning:

• Don't Assume Autopilot - Functions won't run themselves if they're not critical to the organization
• Active Foundation Required - Initial founder involvement is non-negotiable for success

Timestamp: [32:03-32:38]

Building Investor Confidence Through Clear Vision

The Foundation Year Strategy:

1. Theoretical Groundwork - Spent the first year theorizing and developing philosophies
2. Clear Articulation - Provided investors with concrete answers about their vision
3. Transparent Timeline - Communicated that building would take time, not quick wins
4. Apple-Like Ambition - Positioned as building one of India's best product companies

Investment Pitch Framework:

• Product Culture Focus - Emphasized building strong product development capabilities
• R&D Engine Vision - Committed to creating repeatable innovation processes
• Long-term Perspective - Sold the company vision, not short-term product delivery
• Honest Timeline - When 1-year became 3-year timeline, investors weren't surprised

Key Success Factors:

• Consistent Execution - Delivered on promised vision even if timeline extended
• No False Promises - Didn't promise quick six-month turnarounds
• Founder Honesty - Admitted inexperience with timelines but maintained vision clarity
• Investor Alignment - Attracted investors who believed in the long-term company building approach

Timestamp: [32:38-35:03]

Strategic In-House Development Framework

Decision Matrix:

1. High Differentiation + High Return - Build in-house if it provides significant competitive advantage
2. No External Option Available - Build internally when suitable alternatives don't exist
3. Core to Operations - Develop internally if it's fundamental to how everything works
4. Strategic Control Required - Build when control over the component enables additional features

Practical Example - Motor vs Controller:

• Motor: Outsourced because it's commoditized technology
• Motor Controller: Built in-house despite being commoditized because:
• Control enables advanced algorithms
• Unlocks unique features for vehicle control
• Hardware alone doesn't provide these capabilities

Organizational Maturity:

• Early Challenge - Engineering teams naturally want to build everything internally
• Evolved Approach - Focus only on high-impact, differentiating components
• Resource Allocation - Limited resources force strategic choices
• Team Understanding - Healthy portion of organization now understands the framework

Implementation Strategy:

• Financial Discipline - Having money available forces better decision-making
• Clear Criteria - Established framework helps teams choose right battles
• Continuous Evaluation - Regular assessment of build vs buy decisions

Timestamp: [35:09-36:46]

User-Centric Product Development Approach

Core Philosophy - "Built for Us":

• Office Poster Principle - Prominently displayed company philosophy
• Personal Usage Requirement - Only build products that founders and team will personally use
• Authentic Decision Making - Avoid artificial customer personas that may lead to wrong decisions

Design Philosophy Contrast:

• Traditional Design Training - Teaches designers to suppress personal biases
• Ather's Approach - Embrace personal usage experience as valuable input
• Risk of Artificial Personas - Forgetting to "put on customer shoes" leads to poor decisions
• Natural Alignment - Life's too short to build products you don't care about

Scooter vs Motorcycle Decision:

Historical Choice:

• Market Reality - Motorcycles represented bigger chunk of Indian market
• Personal Preference - Founder hated motorcycles, loved scooters
• Passionate Knowledge - Could articulate numerous scooter improvements
• Knowledge Gap - Had no insights about motorcycle improvements

Current Motorcycle Development:

1. Taste Development Process - Teams attending week-long bike rides
2. Training Programs - Biking courses in Chennai and Pune
3. Experience Building - Developing opinions on good vs bad motorcycles
4. Founder Commitment - CEO will also take courses before building motorcycles
5. Informed Decision Making - Only build after developing genuine appreciation

Timestamp: [36:52-39:39]

Essential Insights:

1. Founder Foundation Building - Founders must personally establish and guide new company functions for 6-12 months before stepping back
2. R&D Investment Strategy - Clear vision and honest timelines helped Ather secure investor backing for heavy R&D investment despite extended development periods
3. Strategic Build vs Buy - Focus in-house development only on high-differentiation, core components while outsourcing commoditized elements

Actionable Insights:

• Personal Product Usage - Only build products that you and your team will genuinely use to maintain authentic decision-making
• Taste Development Process - Invest time in developing genuine appreciation and expertise before entering new product categories
• Transparent Investor Communication - Sell long-term company vision rather than short-term product promises to attract aligned investors

Timestamp: [32:03-39:52]

Companies & Products:

• Apple - Referenced as the benchmark for building one of the best product companies, representing Ather's aspiration for strong product culture

Concepts & Frameworks:

• "Built for Us" Philosophy - Ather's core product development principle requiring team members to be genuine users of products they create
• Build vs Buy Framework - Strategic decision matrix focusing on differentiation, return on investment, and core operational importance
• Founder-Led Function Building - Management philosophy requiring founders to personally establish company functions before delegation

Timestamp: [32:03-39:52]

Creative Team and Design Philosophy

Ather Energy has prioritized creative design from the very beginning of their journey:

Early Creative Investment:

• First non-engineering hire: Head of creative (KU) joined in February 2015, completed 10 years with the company
• Design-first approach: Brings in creatives and industrial design before engineering and manufacturing
• Core principle: All design disciplines are extremely central to the company's DNA

Storytelling Challenges and Strengths:

• Internal excellence: Fantastic at internal storytelling through honesty, transparency, and constant communication
• External struggles: Poor at widespread external storytelling that reaches everyone
• Marketing quality: Really good marketing execution, but broader storytelling remains work in progress
• Founder responsibility: Storytelling is fundamentally the founder's job, not the creative team's role

Patient Development Approach:

• Natural evolution: Some aspects of company DNA take time to develop properly
• Avoiding force: Don't want to rush or force DNA changes too quickly
• Continuous improvement: Aware of storytelling gaps and comfortable with the gradual progress

Timestamp: [40:00-41:32]

Revolutionary Pre-Development Validation

Ather has created an innovative approach to prevent engineering teams from building products without proper validation:

The Demo Day Framework:

1. Pre-engineering requirement: Demo days must happen before any actual product development begins
2. 10 lakh budget allocation: Product and design teams receive funding to create high-quality ad films
3. Zero prototype rule: Teams are encouraged to avoid building any prototypes or concept work
4. Vision-first approach: Focus purely on the drug they're selling that the company should buy and build

Production and Presentation Process:

• Professional ad film creation: Not TV-grade but decently good quality promotional content
• Auditorium booking: Full-scale presentation venue for internal launches
• Cross-functional audience: 50 people from marketing, manufacturing, sales, and all CXOs attend
• Complete launch simulation: Full stage launch followed by media queries and comprehensive presentation

Investment and Impact:

• 20 lakh total cost: Approximately spent every 3-6 months for these internal events
• Consumer storytelling improvement: Process is making them better storytellers from customer perspective
• Company-level development: Still working on improving storytelling at the organizational level

Timestamp: [41:39-43:17]

Learning from Early Perfectionism Struggles

Ather encountered significant perfectionism challenges but learned valuable lessons that shaped their current approach:

Early Perfectionism Problems:

• Price paid: Encountered perfectionism issues and paid the price in early years
• Beneficial timing: Lucky to experience these challenges early enough to moderate extremities
• System moderation: Early struggles helped balance perfectionist tendencies across the organization

Initial Isolation Mistakes:

• Design team cocooning: Originally thought product and design teams should be completely isolated
• Learning from experience: Discovered this approach was counterproductive
• Integration solution: Learned to bring design teams together with marketing and sales early in the process

Current Balanced Approach:

• Joint forums: Create collaborative spaces between different teams
• Demo day pressure: Internal presentations create healthy pressure and accountability
• Marketing engagement: Marketing teams get excited about concepts and create natural deadlines
• Accountability system: Colleagues hold each other accountable through internal events and launches

Preventing Drift:

• Early mistake: Great ideas kept secret led to projects drifting without direction
• Healthy pressure: Internal selling creates necessary constraints and focus
• Annual commitments: Having scheduled internal events forces teams to deliver on promises

Timestamp: [43:41-45:18]

Purpose-Driven Decision Making

Ather's approach to maintaining honesty and transparency stems from clarity about their core mission:

Clear Purpose Alignment:

• Not chasing financial outcomes: Primary focus isn't on immediate financial returns
• Not chasing media attention: External validation isn't the driving force
• Not chasing fundraising: Even fundraising success isn't the main objective
• Product-first mentality: For the longest time, focused on building a specific product they wanted to create

Avoiding False Shortcuts:

• Shortcut analysis: Taking shortcuts that defeat the original purpose isn't actually a shortcut
• Wrong alley analogy: Compromising core values leads to ending up in the wrong place entirely
• Purpose clarity: Being honest about what you're actually chasing prevents misaligned decisions

Team Alignment Strategies:

• Constant iteration: Regularly remind teams about the company's true mission
• Collective honesty: Teams keep each other honest about the real objectives
• Founder accountability: Difficult for one person to force the entire team down misaligned shortcuts
• Shared purpose: When everyone understands the mission, wrong turns become obvious

Building the Right Company:

• Company vision: After product focus, shifted to building a specific kind of company
• Consistent values: Taking shortcuts would defeat the purpose of the company they want to build
• Long-term thinking: Focus on sustainable practices rather than short-term gains

Timestamp: [45:24-46:52]

Challenging VC Expectations on Deep Tech Returns

Tarun Mehta offers a candid perspective on venture capital expectations for deep tech companies:

VC Timeline Reality Check:

• Seven-year expectation criticism: Wary of VC funds claiming to be deep tech while demanding returns in seven years
• Contradictory positioning: Questions the logic of calling yourself deep tech with such short return timelines
• Industry misconception: Believes VCs are drinking "random Kool-Aid" if they think seven-year deep tech returns are realistic

Ather's Actual Performance:

• 12-year journey: Company is now 12 years old and publicly traded
• Shrinking losses: Financial losses have been consistently decreasing
• $2 billion valuation: Current company valuation represents significant value creation
• Strong outcome assessment: Believes this represents a good outcome for deep tech

Industry Comparison:

• SaaS exception: Most businesses outside of SaaS haven't achieved meaningful profits in 10-12 years
• Internet-enabled businesses: Even internet companies typically haven't made profits in similar timeframes
• VC complaints: Suggests VCs who hate deep tech are simply complaining about the sector

Capital Requirements Reality:

• Factory investment example: 100 crores ($12 million) factory setup is equivalent to one season's marketing budget for regular startups
• Reasonable capex: Questions why this level of capital expenditure is considered excessive
• Clear communication: Advises VCs to simply say no if they can't handle the investment requirements rather than calling it excessive

Success Metric Perspective:

• Exit reality: Questions how many Indian businesses have actually delivered successful exits and returns in 7 years
• Failure labeling: Advises founders not to take "failure" labels too seriously from VCs with unrealistic expectations

Timestamp: [46:52-49:01]

Essential Insights:

1. Creative-first philosophy - Ather hired their head of creative as the first non-engineering employee and maintains design as central to their DNA
2. Demo day innovation - Revolutionary pre-development process requiring teams to create ad films before building products, preventing engineering drift
3. Honest purpose alignment - Maintaining transparency becomes easier when teams are clear about core mission rather than chasing financial or media outcomes

Actionable Insights:

• Bring creative and design teams into collaboration with marketing and sales early to create healthy internal pressure
• Use demo days with real budgets (10 lakhs for ad films) to validate concepts before engineering investment
• Challenge VC expectations that don't align with deep tech realities - seven-year return timelines may not be realistic for hardware companies
• Focus on building the specific product and company you want rather than optimizing for short-term gains that defeat your original purpose

Timestamp: [40:00-49:32]

People Mentioned:

• KU - Ather Energy's head of creative who joined in February 2015 and completed 10 years with the company

Companies & Products:

• Apple - Referenced as comparison for Ather's approach to building a product-focused company in India
• Amazon - Mentioned in context of press release practices that Ather goes beyond in their demo day process
• Ather Energy - The main company discussed, now public with $2 billion valuation after 12 years

Concepts & Frameworks:

• Demo Day Process - Ather's unique pre-development validation requiring ad film creation before engineering work
• Design-First Philosophy - Bringing creative and industrial design teams before engineering and manufacturing
• Deep Tech Investment Timeline - Discussion of realistic return expectations for hardware and deep tech companies versus traditional startups

Timestamp: [40:00-49:32]