Leading the B2B frontier: People fueling profitability

Summary

In this insightful conversation, Rupali of Matrix Moments interviews Ashish Mahapatra, co-founder and CEO of OFB and Oxo, two profitable unicorns. They delve into the importance of having a larger-than-life persona for company representatives, the strategy of building in-house talent, and the challenges of integrating senior external hires. Ashish shares his vision on company culture, hiring non-negotiables, and the success of their Management Trainee program, emphasizing patience and the long-term benefits of investing in young talent.

Takeaways

• 🚀 Building a successful company requires a strong founding team with common values and complementary skills.
• 💡 The importance of hands-on founders who are deeply involved in the operations and not reliant on assistants or junior staff.
• 💰 A focus on profitability and prioritizing the company's needs over personal interests is crucial for business success.
• 📈 Scaling a business involves a clear vision, a dedicated team, and the willingness to invest in young talent for long-term growth.
• 🔑 Emphasizing the significance of in-house talent development over hiring senior external candidates for better cultural integration.
• 👥 Recognizing the value of smaller, highly integrated teams over larger teams for efficiency and cost-effectiveness.
• 🌟 The belief that everyone in the company, not just the founder, should embody a 'larger than life' persona to enhance the company's image.
• 📝 The power of personal storytelling and leadership in social media as a free marketing tool and a recruitment strategy.
• 🔄 The necessity of adapting and changing roles for new hires to find the best fit and maximize their potential within the company.
• 🤝 The importance of maintaining promises made during campus recruitment to build trust and a positive employer brand.
• 💡 Leading by example is a key management style, where senior management's actions directly influence company culture and operations.

Q & A

What is the significance of having a larger-than-life persona for a founder or a company according to Ashish Mahapatra?

Ashish Mahapatra believes that not just the founder, but almost everyone associated with a company should have a larger-than-life persona. This is because in the early stages of a company, the company's image is a summation of everyone associated with it, and having a strong online presence can add to the company's image, attract the right kind of people, and serve as free marketing.

What is Ashish Mahapatra's view on building in-house talent as opposed to hiring experienced professionals?

Ashish Mahapatra prefers building in-house talent because it can be more cost-effective and allows the company to shape individuals according to its culture. He believes that young people with energy and hunger can pick up skills with time, action, and empowerment, rather than relying on expensive and potentially less adaptable senior professionals.

What common values does Ashish Mahapatra emphasize for the founding team of a successful company?

Ashish Mahapatra emphasizes that the founding team must have common values, which include being hands-on, focusing on profitability, and prioritizing the company's interests over personal interests.

What is the 'Playbook' Ashish Mahapatra started with when building his organization?

Ashish Mahapatra's playbook for building an organization includes having common values among the founding team, ensuring each member has unique skills that others can't replicate, and fostering an environment of trust and respect based on these shared values and complementary skills.

How does Ashish Mahapatra define the success of his companies, OFB and Oxo?

Ashish Mahapatra defines the success of his companies by their profitability and growth. OFB has grown to a team of about 650 people with a revenue of close to 16,000 cror and a profit of 500 cror. Oxo has about 400 employees and manages assets worth close to 4,83 cror with a profit of 200 cror.

What is the team size of OFB and Oxo according to the transcript?

OFB has a team size of close to 650 people, while Oxo has about 400 employees, making the combined team size approximately 1100 people.

What is the annual revenue and profit of OFB according to the transcript?

OFB had an annual revenue of close to 16,000 cror and a profit after tax of 500 cror, as mentioned in the transcript.

What is the Asset Under Management (AUM) and profit of Oxo as per the transcript?

Oxo has an Asset Under Management (AUM) of close to 4,83 cror and a profit after tax of close to 200 cror.

What is the significance of the 'U lala' company term as used by Ashish Mahapatra?

The term 'U lala' company is a playful response to criticism that Ashish's company was not focused on making money. Ashish turned it into a positive by adding an 'O' to 'la la', making it 'U lala', indicating that they are now everyone's fantasy due to their success, while still maintaining the core of being a profitable business.

What is Ashish Mahapatra's approach to hiring and retaining talent?

Ashish Mahapatra's approach involves hiring young talent from tier-2 colleges, giving them roles early on with the understanding that they may not deliver significant output for the first couple of years. He emphasizes patience, providing second chances in different roles if the initial role doesn't work out, and ensuring that promises made during campus recruitment are kept.

What are the three non-negotiables Ashish Mahapatra looks for when hiring someone?

The three non-negotiables are: 1) The person must always aim to do the right thing, not the fast or quick thing. 2) The person must be willing to work hard and go out of their comfort zone. 3) The person must have a commercial mindset and a desire to make money.