Hello everyone! I have been waiting long to pen this down to share what all happened, and what I learnt following the acquisition of my startup Eashmart.(Really sorry Asha, Darshan to have been so late)
First of all, let me tell you who am I, what we did, and all that! I am an entrepreneur at heart, always wanting to create a business from anything people find a problem in. I started Eashmart as a way of solving the issue of cashless payments being a hassle in this country. (Have you been finding entering the pin number every time you fuel your vehicle, or go to a restaurant? Yes that exactly, and even more). I built an app that stores your card info with industry mandated security measures, and allows you to make a payment to someone by simply entering their name/phone.
We got acquihired by PayU very recently, and are now solving the same issue under the name of PayUMoney app. While I cannot disclose any of the deal details, I want to share some things that could have given me an advantage had I known them before hand.
First off, TAXES! I didn’t realize while signing the deal that I’d have to pay about 25% of the deal amount as taxes! SHIT! It would have made sense for me to ensure that I got a clause to get the acquirer to add in the tax amount. Please do consult a CA/CS who is working in the same area as the domain of the ROC(Registrar of company) of your company.
Secondly, ensure that everything you have asked for is on paper. Thankfully, PayU guys were more than just and they helped me with their own lawyers as well as helping me with each and every point, and all the pros and cons of every line in our agreement. At the end of the deal, we got exactly what we had agreed upon, and we share an awesome workplace!
Thirdly, when you are approached for an acquisition, don’t be too inclined. We got approached last year, and we didn’t even have a meeting until 4-5 months. All this allowed us to prove that we are doing strong, and hence prove to PayU as well as everyone else that we are running strong. Folding up too early might end up getting you a bad deal.
Lastly, do not go for an acquihire unless you are really into the business of the acquirer. It’s a bad deal for both you. For us, it was literally the problem we were solving at Eashmart and hence we are still as dedicated to our work at PayU as we were at Eashmart!